BluSmart Gensol Scam: Misappropriation Of EV Funds, Diversion To Jaggi Brothers And Ashneer Grover Connect

The Securities and Exchange Board of India ( SEBI ) have dropped a bombshell with its interim order issued on April 15, 2025, barring Gensol Engineering Limited (GEL) and its promoters Anmol Singh Jaggi and Puneet Singh Jagg,i from accessing the securities market over grave financial misconduct. The investigation has sent shockwaves through India’s electric vehicle (EV) ecosystem, especially raising red flags over BluSmart, a startup co-founded by Anmol Jaggi, known for its electric cab services.

SEBI’s probe revealed a significant misuse of loans amounting to Rs 262 crore, which were secured for EV procurement but were allegedly siphoned off for luxury purchases, family transfers, and unrelated startup investments—including in Ashneer Grover’s new venture, Third Unicorn Pvt Ltd.

EV Funds Gone Missing: Only 4,704 EVs Bought Against 6,400 Target
According to SEBI’s findings, Gensol had taken loans from the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) for the procurement of 6,400 electric vehicles. However, only 4,704 EVs were actually purchased, leaving a glaring discrepancy and Rs 262 crore unaccounted.

The regulator’s 103-page interim order shows that instead of investing in EVs, the Jaggi brothers diverted funds to personal accounts and non-related companies, including significant amounts routed to Gensol Ventures Pvt Ltd, a company owned by the promoters.

Read More 
‘Victim’ Ashneer Grover Defends Rs 1.5 Cr BluSmart Investment Amid SEBI Probe Into Gensol

SEBI Exposes Personal Luxuries and Lavish Spending
A forensic look into Anmol Singh Jaggi’s bank transactions paints a disturbing picture. Out of the misused funds, Rs 25.76 crore was allegedly spent on personal and unrelated expenses.

Major transactions included:
Rs 10.64 crore transferred to Gensol Ventures Pvt Ltd
Rs 6.20 crore sent to his mother, Jasminder Kaur
Rs 2.98 crore to his wife, Mugdha Kaur Jaggi
Rs 1.86 crore spent in UAE Dirhams
Rs 26 lakh splurged on a golf set
Rs 23 lakh transferred to ICICI Securities
Rs 17.28 lakh spent at Titan Company, likely for luxury watches or jewelry
Rs 11.75 lakh paid to DLF Homes for property-related expenses
Rs 10.36 lakh spent on spa treatments

The SEBI order also noted payments for credit card bills (Rs 9.95 lakh to ICICI Bank ), travel bookings (Rs 3 lakh at MakeMyTrip), and personal fashion (Rs 8 lakh at Mayo Design).
 

Puneet Singh Jaggi’s Transactions Echo the Same Pattern
His brother and co-promoter, Puneet Singh Jaggi, also allegedly misused Rs 13.55 crore, following a similar path. SEBI uncovered:

Rs 10.03 crore moved to Gensol Ventures Pvt Ltd
Rs 1.13 crore transferred to wife, Shalmali Kaur Jaggi
Rs 87.52 lakh to mother, Jasminder Kaur
Rs 66.35 lakh spent on foreign currency
Rs 36 lakh and Rs 13 lakh spent on two American Express cards
Rs 11.4 lakh paid under “INFT”
Rs 3 lakh for a lease deed registration
Rs 2.61 lakh paid to Ali Imran Naqvi, an executive at Gensol
Rs 3 lakh transferred to Mugdha Kaur Jaggi, Anmol’s wife

Gensol’s Web of Undisclosed Deals and Market Manipulation
In addition to misappropriating funds, Gensol Engineering allegedly failed to disclose related-party transactions, violating corporate governance norms. SEBI found that the promoters had also invested in Wellray Solar Industries Pvt. Ltd., a company that was actively trading in Gensol shares—a move that has triggered market manipulation concerns.

BluSmart Feels the Heat
The SEBI probe has placed BluSmart, India’s prominent electric cab company, under intense scrutiny. Although not directly named as a wrongdoer, BluSmart's funding and business operations are now under the scanner, since Anmol Singh Jaggi played a pivotal role in the company and allegedly routed funds through EV-linked loans that were meant for Gensol’s operations.

Ashneer Grover Connect To Blusmart?
A surprising name that has surfaced in the ongoing investigation is Ashneer Grover, former BharatPe co-founder. According to SEBI’s interim order, Anmol Jaggi invested Rs 50 lakh into Grover’s new venture Third Unicorn Pvt Ltd, acquiring 2,000 shares as of March 31, 2024.

Responding to the media buzz and SEBI’s findings, Grover posted on X (formerly Twitter):
“In fact, I am the ‘victim’ of the current scenario. I have personally invested ₹1.5 crore in BluSmart and ₹25 lakh in Matrix.”
 

Grover maintained that he had no role in the financial irregularities and hoped the business could survive the ongoing crisis, stating:
“I hope the business / company can survive the current fiasco for the sake of its stakeholders.”


SEBI’s Stern Actions and Warning to Investors
SEBI has taken decisive steps against Gensol, which include:
Barring the Jaggi brothers and Gensol from the capital markets until further notice
Ordering a forensic audit of Gensol Engineering and all related entities
Halting Gensol’s proposed stock split, which was aimed at attracting more retail investors

What's Next for BluSmart and Gensol?
As BluSmart remains tangled in the financial and reputational fallout, questions loom over its funding sources, governance structure, and potential liabilities. Investors and industry stakeholders are watching closely to see how the startup will navigate the storm, especially with SEBI’s forensic audit potentially unearthing deeper linkages between Gensol and its associated companies.