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A portion of the loans raised by Gensol from monetary establishments is suspected to have been diverted abroad in violation of the International Trade Act (FEMA). Investigations are on to assortment data on different corporations linked to the Jaggi brothers that will have been used as entrance firms to route funds to international accounts, an NDTV Revenue report mentioned.
Anmol Singh Jaggi is reportedly in Dubai, whereas Puneet Singh Jaggi was questioned by ED officers for over 6 hours in reference to the case on Thursday. Earlier within the day, a information report had cited sources to say that Puneet Singh Jaggi had been taken into custody, however a senior ED official later denied any arrest or detention of the businessman.
The ED has searched a number of premises in Delhi, Gurugram, and Ahmedabad linked to the Jaggi brothers. The ED is investigating suspected international alternate violations involving unauthorised remittances of round Rs 200 crore to Rs 300 crore.
Authorities-owned Energy Finance Company Ltd (PFC) has already filed a criticism with the Delhi Police towards Gensol Engineering Ltd for allegedly submitting false paperwork to take loans for purchasing electrical autos.
The general public sector enterprise mentioned it’s also analyzing the matter internally underneath its anti-fraud coverage. The investigation will give attention to monitoring lacking supply receipts for EVs financed by the PFC.
Gensol had taken loans to the tune of Rs 978 crore from the PFC and the Renewable Vitality Growth Company (IREDA) to purchase electrical autos for working a web based inexperienced taxi service, which had grow to be fairly in style in Delhi NCR and Bengaluru.
These loans had been supposed for use for purchasing EVs, however over Rs 200 crore of the quantity was routed by way of a automotive dealership and despatched to different firms linked to the promoters. Among the cash was used for luxurious purchases, together with flats in DLF Camellias, the place the worth of an condo begins at Rs 70 crore. A SEBI investigation revealed that Gensol has not been capable of account for Rs 262.13 crore of the quantity.
On April 15, 2025, the SEBI launched an in depth interim order exhibiting what went fallacious at Gensol. The order mentioned the promoters of Gensol, together with the Jaggi brothers, had handled the corporate like their private ‘piggy financial institution’. There have been no correct monetary controls in place, and the promoters had diverted mortgage cash to themselves or associated entities.
