Delhi Puneet Jaggi, a co-founder of BluSmart, was arrested by the Enforcement Directorate (ED) at a hotel in Delhi after searches the agency carried out in connection with a case involving Gensol Engineering Ltd.

The company’s offices in Delhi, Gurugram, and Ahmedabad were raided in accordance with the Foreign Exchange Management Act (FEMA).

Anmol Singh Jaggi and Puneet Singh Jaggi, brothers who promote Gensol, are under investigation by the ED after a SEBI report accused them of financial irregularities, corporate misgovernance, and money diversion.

Gensol hadn’t released a comment yet.

The Delhi police previously received a complaint from the government-owned Power Finance Corporation Ltd (PFC) against Gensol Engineering Ltd, which was supported by the Jaggi brothers, for allegedly submitting bogus paperwork in order to get loans for the purchase of electric vehicles (EVs).

“The Delhi police’s Economic Offenses Wing has received a complaint from PFC about the distribution of forged papers. PFC is dedicated to protecting its interests and making sure that the loan is repaid while maintaining openness in its business practices,” the public sector financial firm said in a statement.

In order to demonstrate that it was making regular loan payments, Gensol, the parent company of the all-electric vehicle (EV) app BluSmart, which offered green taxi services, reportedly falsified letters from its two lenders, PFC and Indian Renewable Energy Development Agency Ltd (IREDA). But when the credit rating companies started checking the letters with the lenders, the allegation was revealed.

According to the public sector undertaking, the issue is being investigated internally as part of its anti-fraud program. The monitoring of missing delivery receipts for EVs sponsored by the PFC will be the main focus of the inquiry.

In order to operate an online green taxi service that had gained popularity in Bengaluru and Delhi NCR, Gensol had borrowed Rs 978 crore from PFC and the Renewable Energy Development Agency (IREDA) to purchase electric cars.

Additionally, Gensol was unable to account for Rs 262.13 crore of the total, according to a SEBI inquiry.

SEBI published a thorough interim ruling detailing the issues at Gensol on April 15, 2025. According to the ruling, Gensol’s proprietors, Anmol and Puneet Singh Jaggi, had seen the business as their own “piggy bank.” The promoters had transferred loan funds to themselves or affiliated companies, and there were inadequate financial controls in place.

Between FY22 and FY24, Gensol obtained loans from IREDA and PFC totaling Rs 977.75 crore. Specifically, Rs 663.89 crore was allocated for the acquisition of 6,400 EVs. However, according to supplier Go-Auto, the business acknowledged purchasing only 4,704 cars for a total of Rs 567.73 crore.