The Central Bureau of Investigation has registered a case against Gensol Engineering Limited, Gensol EV Lease Limited, its promoters and others for allegedly causing a loss of ₹672.74 crore to the Indian Renewable Development Agency Limited (IREDA).
Later, investigations by the Securities & Exchange Board of India revealed alleged fraudulent activities by the borrower and other associated entities, also involving the misappropriation of funds provided by IREDA. Among those named in the First Information Report (FIR) are Anmol Singh Jaggi and Puneet Singh Jaggi, co-founders of the electric mobility ride-hailing service BluSmart and Gensol Engineering. It had extended financial assistance to Gensol Engineering for procurement of electric vehicles and execution of Engineering, Procurement, and Construction (EPC) in solar projects. Among other securities, the loans were secured by the hypothecation of vehicles purchased with disbursed funds, along with a charge on lease rentals to be received from the lessee. The Corporate Insolvency Resolution Process with respect to the borrower is currently ongoing under the National Company Law Tribunal.
IREDA, in its complaint to the CBI, alleged that it suffered a loss of ₹453.77 crore as principal amount outstanding on account of Gensol Engineering and ₹218.97 crore as principal amount on account of Gensol EV Lease Limited, excluding interest liability. The FIR mentioned that apart from IREDA, 15 banks and financial institutions, including Power Finance Corporation Limited, Canara Bank, HDFC Bank, and ICICI Bank, had granted loans to Gensol Engineering.
