Gensol-BluSmart Saga: Jaggi Brothers' Luxury Spending Raises Eyebrows

In a massive scandal in the Indian startup world, Gensol Engineering and BluSmart Mobility are caught in a storm of fraud claims along with a crashing stock price.

Gensol's founders Anmol Singh Jaggi and Puneet Singh Jaggi have been banned by the Indian markets regulator the Securities and Exchanges Board of India (Sebi), from trading stocks or holding company roles as it was revealed that the two had diverted Rs 262 crores of company funds.

After the mobility firm BluSmart was founded, Gensol had secured Rs 977 crore in loans from state-backed lenders with Rs 663 crore earmarked specifically for purchasing 6,400 electric vehicles.

After observing rapid growth and high market confidence, BluSmart missed a crucial Rs 30 crore bond payment, which hinted at liquidity issues with the firm, while Gensol was burdened with a massive Rs 1,512 crore debt and an alarming 2:1 debt-to-equity ratio.

A whistleblower then lodged a complaint with Sebi and accused the promoters of manipulating the stock and misusing funds.

Sebi also found  that 50 lakh of the diverted funds had been invested in Third Unicorn Pvt Ltd, a startup co-founded by Ashneer Grover, who comes from Shark Tank India fame and is the former managing director of BharatPe.

While the companies have been struggling, the two brothers who are also the founders of Gensol Engineering have been spending their money in the following ways:

Anmol Singh Jaggi’s Luxury Spending:

Anmol Singh Jaggi had diverted Rs 25.76 crore from Wellray, which is a firm specialising in oilfield services to fund luxury purchases, which include Rs 1.86 crore on foreign currency (AED), Rs 26 lakh on a TaylorMade golf set, Rs 17.28 lakh to Titan Company for luxury goods, Rs 10.36 lakh to a spa, and Rs 8 lakh to Mayo Design for personal luxury.

Puneet Singh Jaggi’s Luxury Spending:

Puneet Singh Jaggi used Rs 13.55 crore from Wellray for luxury expenses, which include Rs 66.36 lakh on foreign currency (AED), Rs 36 lakh and Rs 13 lakh on American Express and Amex cards for high-end purchases, Rs 11.40 lakh on a personal transaction, and Rs 4 lakh on additional personal luxury spending.

Additionally, Anmol Singh Jaggi had also used Gensol funds to pay Rs 5 crore in advance for a DLF Camellias Apartment in Gurgaon, for an agreement value (price agreed upon by buyer and seller for property transaction) of Rs 37.92 crore.

Also Read: Why Are BluSmart Cabs Suddenly Off the Roads? Who To Blame Now