The Enforcement Directorate (ED) has detained Puneet Jaggi, co-founder of electric vehicle cab service BluSmart, from a hotel in Delhi as part of an ongoing investigation into financial irregularities involving the Gensol Group, a company he also helped establish.

Sources revealed that ED officials also carried out searches at Gensol’s premises in Delhi, Gurugram, and Ahmedabad. These actions fall under the ambit of the Foreign Exchange Management Act (FEMA).

Investigators located Mr. Jaggi at a Delhi hotel where he had reportedly been staying for the past week.

The case gained momentum after Power Finance Corporation lodged a complaint with both the Delhi Police and the Economic Offences Wing. Meanwhile, Jaggi’s brother and Gensol co-founder, Anmol Jaggi, is currently in Dubai and has yet to return to India.

The ED launched this probe following a report by SEBI (Securities and Exchange Board of India), which flagged serious financial misconduct. The report accused the Gensol Group of misappropriating funds, transferring money to shell companies, manipulating share prices, and using loan money for personal expenditures.

Sources added that the ED may initiate a separate case under the Prevention of Money Laundering Act (PMLA) based on the initial findings. Authorities have also tracked the wives of both Jaggi brothers in Pune, and they are expected to be summoned for questioning soon.