BluSmart Founders Face CBI Probe Over Rs 672 Cr IREDA Loss

The Central Bureau of Investigation (CBI) has registered a case against Gensol Engineering Ltd and the founders of BluSmart EV taxi service, Anmol Singh Jaggi and Puneet Singh Jaggi. This action follows a complaint from the Indian Renewable Development Agency (IREDA), which alleges a financial loss exceeding Rs 672 crore.

IREDA had extended loans to Gensol Engineering Limited and its subsidiary, Gensol EV Lease Limited, specifically for the acquisition of electric vehicles to be used by the BluSmart EV ride-hailing service. These funds were reportedly misused and diverted from their designated purpose.

Allegations of Fund Diversion and Forgery

• The alleged financial loss to IREDA totals over Rs 672 crore, excluding interest.
• Gensol Engineering Limited accounts for Rs 453.77 crore of the loss.
• Gensol EV Lease Limited is associated with a loss of Rs 218.97 crore.
• The CBI’s charges include criminal conspiracy, cheating, forgery for cheating, and using forged documents.
• A key allegation highlights the submission of forged letters, purportedly from IREDA, to credit rating agencies concerning loan statuses.

A forensic audit further revealed that funds were transferred to related entities. These transfers were classified as loans, advances, or repayments, which diverged significantly from the approved use of the original disbursements.

Broader Financial Exposure

• Beyond IREDA, 15 other financial institutions had also provided loans to Gensol Engineering Limited.
• Notable institutions include Power Finance Corporation Ltd.
• Others are Canara Bank, IDFC Bank, and ICICI Bank.

This ongoing investigation underscores the scrutiny faced by founders and their ventures when handling public or institutional funds, particularly in the rapidly evolving EV and renewable energy sectors.