ED Raids Gensol Engineering, Detains Co-Promoter Puneet Jaggi Amid Financial Irregularity Probe
The federal agency executed the searches under the provisions of the Foreign Exchange Management Act (FEMA), targeting premises in Delhi, Gurugram, and Ahmedabad
The Enforcement Directorate (ED) on Thursday carried out searches at multiple locations linked to Gensol Engineering Ltd, a company now under intense scrutiny over alleged financial misconduct. According to a PTI report citing official sources, Puneet Singh Jaggi, one of the company’s co-promoters, was detained from a hotel in Delhi during the operation.
The federal agency executed the searches under the provisions of the Foreign Exchange Management Act (FEMA), targeting premises in Delhi, Gurugram, and Ahmedabad. Gensol Engineering, which is listed on both BSE and NSE, operates in the solar consulting and electric vehicle (EV) leasing sectors.
SEBI Report
The enforcement action comes in the wake of an interim report by the Securities and Exchange Board of India (SEBI), which raised serious concerns over corporate governance practices within the company. SEBI’s findings alleged that the Jaggi brothers, Puneet and Anmol Singh Jaggi, were involved in misappropriation of funds, using company resources for personal enrichment, and unauthorised transactions.
The SEBI report also claimed that funds borrowed from the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), intended for the procurement of EVs and execution of EPC contracts, were instead funneled into shell entities or used to acquire assets in the names of relatives and promoters. These included high-value purchases such as luxury real estate in Gurugram’s upscale DLF Camellias, expensive golf equipment, and personal credit card payments.
Money Laundering Case
The ED is expected to register a money laundering case following the filing of a formal complaint by IREDA and PFC with the Delhi Police's Economic Offences Wing. While Puneet Jaggi is in custody, his brother Anmol is reportedly in Dubai. Their spouses have been located in Pune. Another individual under the ED's lens is Ajay Aggarwal of Go Auto Pvt Ltd, a distributor of Tata electric vehicles, suspected of facilitating fund diversion, as per the report.
BluSmart Mobility, a separate EV venture founded by the Jaggi brothers operating in Delhi-NCR, Mumbai, and Bengaluru, has suspended bookings since the SEBI order was made public.
As investigations deepen, regulatory agencies are focusing on the misuse of public funds, failure of governance, and the wider impact on shareholders and financial institutions.
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