Blusmart Co-Founder Puneet Singh Jaggi Detained From Delhi Hotel: ED Raids Gensol Offices
BluSmart and Gensol have been in the news for the last one week. Gensol Engineering’s co-promoter and BluSmart’s Co-founder, Puneet Singh Jaggi, has now been detained by the Enforcement Directorate.
The government agency also conducted searches at company offices in Delhi, Gurugram, and Ahmedabad. As per the reports, Puneet Singh Jaggi was detained from a hotel in Delhi.
The Enforcement Directorate conducted searches under the provisions of the Foreign Exchange Management Act (FEMA). Both Puneet Singh Jaggi and Anmol Singh Jaggi are under the radar of the investigation agency after markets regulator SEBI reported them for alleged financial misconduct and diversion of funds.
While Puneet has been detained from Delhi, Anmol Jaggi is stated to be in Dubai. The ED action against the owners is based on the SEBI order, which claimed that Gensol Engineering obtained a loan and did not utilise the funds properly.
What Happened?
The Jaggi brothers founded Gensol Engineering as an engineering, procurement, and construction company. In 2018, Jaggi teamed up with Punit Goyal and started BluSmart. As part of their expansion plans, Gensol secured loans worth nearly ₹978 crore from government-backed lenders IREDA and Power Finance Corporation between 2021 and 2024.
The aim was to buy 6,400 electric vehicles for leasing to BluSmart. However, when SEBI investigated, it was found that the funds earmarked for EV purchases were misused. Only 4,704 vehicles were actually bought, at a cost of ₹568 crore.
SEBI found that the remaining ₹262 crore was unaccounted for. Instead of being used for EV procurement, large portions of these funds were routed through a web of related entities and ultimately spent on personal luxuries, including a high-end apartment in Gurgaon’s DLF Camellias project.
The Securities and Exchange Board of India (SEBI) has debarred BluSmart’s founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the capital markets and holding directorial posts, following revelations of large-scale fund diversion.
After the news broke, Gensol’s stock price plummeted, wiping out investor wealth and triggering a forensic audit of the company’s accounts. For BluSmart, the crisis has sparked an exodus of top executives, including the CEO, CTO, and Chief Business Officer, all of whom resigned in late March.
Amid the ongoing fund mismanagement issues, BluSmart was also in talks with Uber’s Indian arm to lease out around 800 to 1,000 of its EVs as Uber Green cabs. It looks like the transition has already started, as we recently saw images of BluSmart cabs outside Bengaluru airport with Uber Green stickers on them.
After the issue started, BluSmart had asked its drivers to stop accepting bookings for the next three to four days due to an audit. We assume that when the drivers resume their duties after the so-called audit, they will be asked to operate under Uber Green instead of BluSmart.
BluSmart was definitely a great option for Indian commuters. It was different from Uber and Ola, as it did not rely on driver-owned cars. BluSmart owned and operated its entire fleet. This helped them manage the system, including charging and maintenance.