Till recently, Anmol Singh Jaggi was celebrated as a pioneer in India’s renewable energy sector. His stock went up when he co-founded BluSmart Mobility, India’s first all-electric ride-hailing platform in 2019. That carefully cultivated image lies shattered after Tuesday’s interim order by the markets regulator.
The order details how the co-promoter of renewable energy firm Gensol Engineering along with his brother Puneet Singh Jaggi used the listed company for their own benefit by misusing institutional loans, laundering funds through related entities, and financing a super-rich lifestyle with minority shareholders’ money.
The “systemic fraud and fund diversion,” which allegedly created an elaborate network of shell companies to siphon hundreds of crores from Gensol, have ruined thousands of small shareholders. The firm recently had its credit rating slashed to default, wiping out more than 70% of its market value in less than two months. This slump starkly contrasts with the stock’s surge of about 3,600% from 2022 to its all-time high in early 2024.
Sebi’s investigation found that Gensol obtained Rs 663.89 crore in term loans from IREDA and PFC for procuring 6,400 electric vehicles, but delivered only 4,704 EVs worth Rs 567.73 crore. The remaining Rs 262.13 crore disappeared through what Sebi described as “layered transactions” benefiting the Jaggi brothers personally.
At the center of the scheme was a company called Wellray Solar Industries, nominally owned by a former Gensol employee but functioning as the main conduit for fund movement. Wellray received Rs 424.14 crore from Gensol over two fiscal years, while transferring Rs 246.07 crore to Gensol-related parties, including Rs 25.76 crore directly to Anmol and Rs 13.55 crore to Puneet.
They allegedly used the money to maintain an ostentatious lifestyle. A striking example of fund diversion involved the purchase of a luxury apartment at DLF Camellias in Gurugram. Sebi’s order details how, in September 2022, Gensol received a loan of Rs 71.41 crore from IREDA, added Rs 26.06 crore from another account, and transferred Rs 93.88 crore to vehicle supplier Go-Auto. On the same day, Go-Auto transferred Rs 50 crore to Capbridge Ventures LLP, where both Jaggi brothers are designated partners. Capbridge then paid Rs 42.94 crore to DLF for the apartment.
The booking advance of Rs 5 crore was paid by Anmol’s mother, Jasminder Kaur, also using Gensol’s funds. When DLF returned this advance, the money wasn’t returned to Gensol but instead went to Matrix Gas and Renewables, another Jaggi-controlled entity. According to internal sources, Anmol would regularly invite employees to the Camellias apartment to hold meetings and discussions.
Sebi’s analysis of bank statements has detailed the brothers’ personal expenses funded through diverted company money: Rs 26 lakh for a golf set, Rs 1.86 crore to buy foreign currency in AED, Rs 17.28 lakh to Titan Company, Rs 10.36 lakh on spa sessions, and Rs 50 lakh invested in Third Unicorn, a startup founded by former BharatPe co-founder Ashneer Grover.
Sebi also uncovered evidence of market manipulation. Wellray conducted 99% of its trading activity in Gensol shares, buying and selling over Rs 338 crore worth of stock between November 2022 and November 2024 – trading funded by Gensol itself.
Even the company’s capital raising wasn’t immune from manipulation. Sebi found that Gensol had funded its own promoters’ participation in a September 2022 preferential allotment, with Rs 10 crore flowing through Wellray to the Jaggi brothers before returning to Gensol disguised as promoter investment.
The investigations began after Sebi received a complaint in June 2024 regarding share price manipulation and fund diversion. During its investigation, Sebi discovered the company had submitted forged letters from IREDA and PFC falsely claiming regular debt servicing. Both lenders categorically denied issuing such letters, as per the interim order.
A visit by NSE officials to Gensol’s Pune plant earlier this month found virtually no manufacturing activity despite the company’s public claims about receiving 30,000 pre-orders for its newly announced two-seater electric cars – with electricity bills averaging less than Rs 1.6 lakh monthly. Internal sources who were working at the Chakan plant told FE that the company had only produced 10 such EVs which were mainly for testing purposes.
With Sebi’s investigation exposing significant corporate governance failures and potential criminal liability, legal experts believe the consequences could extend far beyond the current market restrictions.
Sonam Chandwani, Managing Partner at KS Legal & Associates, said: “Institutional lenders such as PFC and IREDA may initiate loan recalls, cancel credit lines, and declare group companies as non-cooperative or wilful defaulters. The forensic audit now ordered by Sebi will trace fund flow across all entities connected to the promoters, and if public funds are found to have been routed into real estate, equities, or personal use, there may be clawbacks and attachments under PMLA and the Companies Act.”
Chandwani further noted that with promoter shareholding already diluted and pledged, the group risks a hostile takeover or forced board reconstitution. “The reputational collapse could lead to delisting pressure, cancellation of EPC orders, and sectoral blacklisting, especially in government-backed infrastructure and clean energy contracts,” she added.
The implications extend to BluSmart, the Jaggi brothers’ electric ride-hailing venture, which both co-founders have famously pitched as Ola-Uber disruptor. According to inside sources, financial strains became apparent only in January when salary payments were delayed at both Wayo Logistics, and later at BluSmart with Anmol eventually communicating a “financial crisis at the group” earlier this month. Senior employees, describe both Jaggi brothers as being very approachable, and having “a knack of convincing employees that they were on a green mission, together.”
As the forensic auditor begins a six-month investigation, the brothers’ once-feted green energy empire faces an uncertain future, along with the interests of Gensol’s over 100,000 retail shareholders.