The Central Bureau of Investigation (CBI) has registered a case against Gensol Engineering Ltd (GEL) and its promoters – Anmol Singh Jaggi and Puneet Singh Jaggi – for alleged diversion of funds borrowed from the Indian Renewable Energy Development Agency Limited (IREDA).
Other than Jaggis and GEL, its sister concern Gensol EV Lease Ltd and unknown persons have been named in the first information report (FIR), registered on July 31 on a complaint by IREDA.
Anmol and Puneet Jaggi stepped down from the company as managing director and whole-time director, respectively, in May last year.
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There has been no reaction from the promoters or the company to the development. Gensol didn’t respond to an email sent after office hours seeking comments.
Gensol’s financial irregularities
HT first reported on August 5 last year that investigations into Gensol’s alleged financial irregularities would be handed over to the CBI. The IREDA sent its complaint to CBI on July 23.
The Enforcement Directorate (ED) is already conducting a parallel money laundering investigation against Jaggi brothers and has already attached two apartments in Gurugram’s top-end condos, Camellias and Magnolias, registered in the name of a Gensol group company.
According to market regulator, Securities and Exchange Board of India (Sebi), Gensol and its promoters received ₹977.75 crore in loans, of which ₹663.89 crore was meant specifically for the purchase of 6,400 electric vehicles (EVs). However, Gensol procured only 4,704 EVs — far less than 6,400 for which it had received funding.
According to SEBI, the total expected outlay for the EVs was around ₹829.86 crore. By that calculation, ₹262.13 crore remains unaccounted for.
Funds diverted
The regulator found that funds, in many instances, were routed to Anmol and Puneet either directly or indirectly. SEBI’s analysis revealed that some of these funds were used for purposes entirely unrelated to the sanctioned loans. These included personal expenses of the promoters, such as the purchase of a luxury apartment, transfers to relatives, and investments benefiting private entities owned by the promoters.
According to the FIR, IREDA “suffered a loss of ₹453 crore (principal outstanding as on June 30, 2026) on account of Gensol Engineering Ltd and ₹218.97 crore on account of Gensol EV Lease Ltd, excluding interest and other applicable charges”.
HT has reviewed the FIR that accuses the two brothers of criminal conspiracy, cheating and forgery.
In its complaint, IREDA said its internal investigation revealed that there was forgery, misrepresentation and submission of false information to credit rating agencies by Gensol and loan funds were diverted instead of being used for the original purpose.
In January this year, ED said its probe had revealed that GEL and EV ride-hailing service BluSmart collaborated with Go Auto Private Limited (GAPL) in a criminal conspiracy to systematically divert public funds disbursed as loans from public lenders under the guise of expanding their electric vehicle fleet.
It is not clear if the Power Finance Corporation (PFC) has also filed a complaint with CBI.
