New Delhi: The Enforcement Directorate (ED) has shared findings of its FEMA probe conducted against promoters of Gensol Engineering Ltd with the Economic Offences Wing (EOW) of the Delhi Police, people in the know told ET.
The agency has indicated to the Delhi Police that according to evidence gathered by it and initial investigation carried out under relevant provisions of Foreign Exchange Management Act (FEMA) a case is made out against Gensol Engineering, Jaggi brothers and others.
The EOW is already cognisant of complaints given against Gensol Engineering, its promoters Anmol Singh Jaggi and Puneet Singh Jaggi. These include complaints filed by the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) seeking registration of an FIR.
According to people quoted above, the ED will register an ECIR (equivalent to an FIR) under relevant provisions of Prevention of Money Laundering Act (PMLA) on the basis of an FIR, if registered by the EOW.
The ED will then launch a probe under PMLA and will attach assets of the accused, said people cited above. They added that the agency recently shared with EOW its probe findings carried out under FEMA. The agency last month conducted search and seizure operations at the premises of Gensol Engineering Ltd in Ahmedabad and Gurgaon.
The two brothers Tuesday resigned from Gensol Engineering following market regulator's interim order, according to an exchange filing filed on Tuesday. The duo shall also cease to be a member of the various committees of the company.
A regulatory filing last month revealed that the ED, operating under the Foreign Exchange Management Act, 1999 (FEMA), seized documents, electronic devices, and financial records during the raids on April 27, 2025.
Listed on the BSE and NSE, Gensol had stated that the financial impact of the action could not be ascertained at this stage. The company had further stated that it is taking appropriate legal measures in response to the ED's actions.
ED had carried out raids following a Securities and Exchange Board of India (SEBI) interim order on April 15, 2025, barring Gensol's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from securities markets for alleged fund diversion and corporate governance lapses. SEBI's probe revealed alleged misuse of loans for personal expenses.
BluSmart Mobility, Jaggi brothers' another company, runs cabs under the brand name BluSmart, which provides electric cab services in Delhi-NCR, Mumbai, and Bengaluru. Bookings were halted since the report of the Securities and Exchange Board of India (SEBI) surfaced.
The two brothers were also barred by the markets regulator from accessing the securities market until further notice.
The SEBI's interim order alleges that Gensol Engineering's promoters misused the company as if it were their personal enterprise. According to the SEBI order, the promoters allegedly diverted corporate funds for personal luxuries, including purchasing a premium apartment at The Camellias in DLF Gurugram, buying an expensive golf set, settling credit card dues, and transferring money to close family members.
SEBI observed that the promoters were treating the publicly listed firm like a personal piggy bank, channeling funds to related entities and making expenditures with no consideration for shareholder interests.
SEBI's order further said that such financial mismanagement could eventually result in these diversions being written off the company's books, leading to potential losses for investors. Gensol Engineering, which is listed on both the BSE and NSE, operates in the solar consulting and EPC sector and is also involved in electric vehicle leasing.
The Securities Appellate Tribunal (SAT) earlier this month had refused to stay the SEBI's interim order. During the SAT hearing, Gensol had contended that the SEBI order was issued without a hearing and described the resulting impact as a "tremendous loss of business." The company argued the freeze on its demat account and the ongoing forensic audit had jeopardized its operations, with risks of contract cancellations and potential loan defaults.
SEBI had countered by submitting (before SAT) that Gensol had forged repayment certificates on the letterheads of state-run banks to mislead regulators, lenders, and investors.
The agency has indicated to the Delhi Police that according to evidence gathered by it and initial investigation carried out under relevant provisions of Foreign Exchange Management Act (FEMA) a case is made out against Gensol Engineering, Jaggi brothers and others.
The EOW is already cognisant of complaints given against Gensol Engineering, its promoters Anmol Singh Jaggi and Puneet Singh Jaggi. These include complaints filed by the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) seeking registration of an FIR.
According to people quoted above, the ED will register an ECIR (equivalent to an FIR) under relevant provisions of Prevention of Money Laundering Act (PMLA) on the basis of an FIR, if registered by the EOW.
The ED will then launch a probe under PMLA and will attach assets of the accused, said people cited above. They added that the agency recently shared with EOW its probe findings carried out under FEMA. The agency last month conducted search and seizure operations at the premises of Gensol Engineering Ltd in Ahmedabad and Gurgaon.
The two brothers Tuesday resigned from Gensol Engineering following market regulator's interim order, according to an exchange filing filed on Tuesday. The duo shall also cease to be a member of the various committees of the company.
A regulatory filing last month revealed that the ED, operating under the Foreign Exchange Management Act, 1999 (FEMA), seized documents, electronic devices, and financial records during the raids on April 27, 2025.
Listed on the BSE and NSE, Gensol had stated that the financial impact of the action could not be ascertained at this stage. The company had further stated that it is taking appropriate legal measures in response to the ED's actions.
ED had carried out raids following a Securities and Exchange Board of India (SEBI) interim order on April 15, 2025, barring Gensol's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from securities markets for alleged fund diversion and corporate governance lapses. SEBI's probe revealed alleged misuse of loans for personal expenses.
BluSmart Mobility, Jaggi brothers' another company, runs cabs under the brand name BluSmart, which provides electric cab services in Delhi-NCR, Mumbai, and Bengaluru. Bookings were halted since the report of the Securities and Exchange Board of India (SEBI) surfaced.
The two brothers were also barred by the markets regulator from accessing the securities market until further notice.
The SEBI's interim order alleges that Gensol Engineering's promoters misused the company as if it were their personal enterprise. According to the SEBI order, the promoters allegedly diverted corporate funds for personal luxuries, including purchasing a premium apartment at The Camellias in DLF Gurugram, buying an expensive golf set, settling credit card dues, and transferring money to close family members.
SEBI observed that the promoters were treating the publicly listed firm like a personal piggy bank, channeling funds to related entities and making expenditures with no consideration for shareholder interests.
SEBI's order further said that such financial mismanagement could eventually result in these diversions being written off the company's books, leading to potential losses for investors. Gensol Engineering, which is listed on both the BSE and NSE, operates in the solar consulting and EPC sector and is also involved in electric vehicle leasing.
The Securities Appellate Tribunal (SAT) earlier this month had refused to stay the SEBI's interim order. During the SAT hearing, Gensol had contended that the SEBI order was issued without a hearing and described the resulting impact as a "tremendous loss of business." The company argued the freeze on its demat account and the ongoing forensic audit had jeopardized its operations, with risks of contract cancellations and potential loan defaults.
SEBI had countered by submitting (before SAT) that Gensol had forged repayment certificates on the letterheads of state-run banks to mislead regulators, lenders, and investors.
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