From Green Stars to Governance Scandal
Anmol Singh Jaggi and Puneet Singh Jaggi, co-founders of Gensol Engineering and BluSmart Mobility, once stood at the forefront of India’s renewable energy revolution. Their ventures gained swift recognition for championing solar power and electric vehicles.
However, in a major turn of events, the Securities and Exchange Board of India (SEBI) issued an interim order on April 15, 2025, barring both brothers from the securities markets amid serious accusations of siphoning off loan funds for personal use.
The probe, launched in June 2024, reveals a tangled web of falsified documents, loan misuse, and personal luxury expenditures — shaking investor confidence and raising red flags across the clean-tech sector.
The Rise and Fall of Gensol Engineering
Gensol Engineering, a renewable energy firm that initially debuted on the BSE SME platform in 2019, experienced rapid growth in its early years. By July 2023, the company had successfully transitioned to the main boards of both the BSE and NSE, signaling its growing market stature.
Between FY17 and FY24, Gensol’s revenue skyrocketed from approximately $7.35 million to nearly $139 million. Operating profits reflected a similar surge, rising from just $241,000 to over $25 million, while net profits increased from $241,000 to roughly $9.64 million.
This aggressive expansion was fueled by heavy borrowing. By FY24, Gensol’s total debt had swollen to an estimated $151.8 million. At the same time, promoter shareholding dropped drastically—from 70.72% in FY20 to just 35% by March 2025—raising eyebrows about long-term governance and control.
The company’s market capitalization once touched a high of approximately $518 million, but by April 2025, it had plunged to around $61 million, wiping out nearly 90% of its peak value.
Despite its financial boom, allegations of loan fund diversion and document falsification have thrown Gensol Engineering into turmoil. What was once a poster child for India’s clean energy revolution is now facing a deep crisis of credibility and compliance.
The Trigger: Falsified Letters and Delayed Debt Servicing
In March 2024, rating agencies CARE and ICRA downgraded Gensol’s ratings to “D”, citing delays in servicing debt. ICRA later accused Gensol of submitting falsified Conduct Letters from government lenders — IREDA and Power Finance Corporation (PFC).
When SEBI followed up, both lenders denied issuing the documents, triggering deeper investigations.
SEBI Uncovers Default Patterns and Phantom EV Purchases
Between FY22 and FY24, Gensol Engineering secured loans amounting to approximately $117.8 million, of which $80 million was designated for the acquisition of 6,400 electric vehicles (EVs) under its leasing and mobility business.
However, records show that only 4,704 EVs were actually procured, totaling around $68.4 million in purchases. This left over $31 million in unaccounted funds. Investigators allege that a significant portion of this shortfall was funneled into personal accounts and entities linked to the Jaggi family, the company’s co-founders.
Personal Wealth at the Expense of Investors
The Securities and Exchange Board of India (SEBI) revealed a pattern of financial misconduct that strongly suggests self-dealing and misappropriation of corporate funds:
- $5.2 million was routed through Capbridge Ventures to acquire a luxury apartment in DLF Camellias, one of India’s most exclusive residential complexes.
- $60,000 was invested in Third Unicorn, a startup founded by Ashneer Grover, co-founder of BharatPe.
- $747,000 was diverted to Anmol Singh Jaggi’s mother, Jasminder Kaur.
- $358,000 was transferred to Anmol’s wife, Mugdha Kaur Jaggi.
- $136,000 was sent to Puneet Singh Jaggi’s wife, while $105,000 went to his mother.
- Extravagant expenses included $31,000 on a high-end golf set and $3,600 on travel bookings via MakeMyTrip.
SEBI, in its interim findings, stated that the Jaggi brothers operated the company like a personal piggy bank, showing blatant disregard for shareholders, fiduciary responsibility, and financial compliance.
The Aftermath: A Cautionary Tale for India’s Clean Energy Sector
The downfall of the Jaggi brothers and Gensol Engineering raises serious concerns about governance practices in India’s emerging green economy. With SEBI stepping in decisively, the episode serves as a stark warning to other startups juggling public capital and private ambitions.
The regulator has made clear that misusing public company funds for personal gain will not go unchecked — no matter how “green” the mission.