₹97 Crore EV Loan Misused for Luxury: SEBI Investigation on Gensol and BluSmart

SEBI Investigation on Gensol and BluSmart: Details on Misuse of EV Loans for Luxury Lifestyle

The founder and promoter of the companies Gensol Engineering and BluSmart, Mr. Anmol Singh Jaggi and his business partner and Brother Mr. Puneet Singh Jaggi are being investigated by Securities and Board of Exchange of India.

For allegedly defaulting financial records for debt repayment EV purchases for their start-up BluSmart. Allegedly used all the funds to promote their luxurious lifestyle.

As of now being questioned by SEBI being key managerial personales of the related company and being actively participating in the fraud.

The Implications of the SEBI Investigation on Gensol and BluSmart

Anmol Singh Jaggi allegedly rerouted crores meant for the electric vehicle expansion to buy a High end DLF Camellias apartment

In the investigation of SEBI it is found that ₹97 crores, approved for Gensol from the Indian Renewable Energy Department Agency (IREDA) and Power Finance Corporation (PFC) were issued. These Funds were approved for the cause of purchasing new EVs , and ended up being used for personal luxury, such as advance payment of  ₹5 crore to book DLF Camellias Flat in Gurgaon.

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BluSmart suspended operations following the SEBI investigation on Gensol and BluSmart

Because of these allegations BluSmart has stopped its services, and the company had to announce a temporary halt in bookings and indicated that the pre bookings will be refunded to the customers wallet balances within 90 days if the services do not resume.

Several passengers in the Delhi-NCR, Bengaluru, and Mmubai were not able to book their cabs by using BluSmart services Application.

Regulatory Actions enforced by SEBI

There was a forensic audit conducted by the regulatory body SEBI in the intention to investigate the extent of the fraud to detect the internal misgovernance by the directors of the Gensol company and to find out the mischievous party involved.

Allegations on Anmol Singh Jaggi and his brother  by SEBI

• As per the current updates ₹43 Crore used to buy luxury apartments.

• Funds transferred to family members personal accounts, reportedly ₹6.3 crore to their mothers account and ₹3 crore to their spouse.

• *₹50 lakh invested in Ashneer Grover’s company for undisclosed reasons.

• *There are also assumptions of presenting forged documentations to the Power Finance Corporation (PFC) for the approval of the loan.

Harmful Impact on shareholders

The discovery of this controversy in the company Gensol Engineering and BluSmart Mobility has majorly disappointed investors, leading to tangible financial and reputational damages to both the entity and their promoters.

• Decline in the share price- one of the most noticeable and immediate impact is the fall in the stock price of Gensol Engineering. As per the interrime order by SEBI the news of alleged fund diversions, caused in the fall of 85% approx in 2025 of Gensol shares.Wiping out the substantial market capitalization and investors wealth.this inverted J curve in the graph of company’s performance have made future investors faith in the company’s management.

• Operational setbacks-  Due to the SEBI’s instruction the company has paused its all operational activities causing the customer to switch to other available platforms. This causes a lot of loss in the business, as the company will loss its potential customer base and along with preexisting loyal customers. In the long run the company will suffer to attract new customers and will fall under the risk of being replaced by the current competition.
• Exit of Long term Investors- Due to the bad publicity being faced by the company the potential new Investors will be sceptical to the company’s management system and will be hesitant to invest their hard earned financial resource to a such an mis governed organizaion. 

Conclusion

The ongoing SEBI investigation on Gensol and BluSmart has opened a can of worms, revealing disturbing financial misconduct. What was meant to boost India’s EV infrastructure has instead allegedly fueled a lavish lifestyle, shaking investor confidence and damaging the company’s integrity. The diversion of ₹97 crore from sanctioned EV loans not only violates regulatory trust but has also triggered operational halts and steep share price crashes. BluSmart’s suspension of services across key metros like Delhi-NCR and Mumbai adds to the operational crisis.

As SEBI continues its forensic audit, the scandal underscores the need for stronger checks in startup funding and governance. Investors, customers, and stakeholders now face uncertainty, and the once-promising green mobility startup risks being overshadowed by its alleged internal misgovernance. The repercussions of this controversy may serve as a stark lesson for other companies in the clean energy and mobility sector to uphold transparency, compliance, and ethical leadership.