Gensol Shock: Jaggi Brothers Detained in FEMA Case, Hauled to ED Office

The promoters of Gensol Engineering—Puneet and Anmol Singh Jaggi popularly known as the Jaggi Brothers—have been detained by enforcement authorities in connection with a case under the Foreign Exchange Management Act (FEMA). The Enforcement Directorate (ED) took them into custody and brought them to its office for questioning on Wednesday.

The crackdown follows a detailed review of an interim order issued by the Securities and Exchange Board of India ( SEBI ), which had earlier raised serious red flags about financial irregularities. Based on SEBI’s findings, the ED initiated action under FEMA provisions, signaling that the probe may now widen.

The crackdown stems from findings in an interim order by the Securities and Exchange Board of India (SEBI), which flagged financial irregularities at Gensol. These included misleading investor announcements, fake sales claims, and fund diversion. The ED’s action indicates the probe may now expand beyond FEMA violations to deeper corporate fraud.

Gensol had claimed pre-orders for 30,000 electric vehicles at the Bharat Mobility Global Expo in January 2025. But SEBI found these were merely non-binding MoUs with no price or delivery commitments. A much-hyped Rs 315 crore partnership with Refex Green Mobility collapsed by March. Another dubious move involved trying to sell a newly formed U.S. subsidiary for Rs 350 crore without justification.

Factory or Façade? EV Plant Raises Doubts

On April 9, an NSE official inspecting Gensol’s EV plant in Chakan, Pune, found only 2–3 workers and no evidence of actual manufacturing. Electricity bills were shockingly low, with a peak of just Rs 1.57 lakh in December 2024—far below what a functioning EV plant would incur.

Fund Diversion & Lavish Lifestyle

Investigations revealed the Jaggi Brothers diverted Rs 262 crore in company funds. Over Rs 40 crore was used for personal luxury—from spa visits and foreign currency buys to golf gear and an advance for a Rs 38 crore apartment at DLF Camellias. Notably, Rs 50 lakh went to Ashneer Grover’s startup, Third Unicorn. BluSmart, Gensol’s mobility arm, defaulted on a Rs 30 crore bond amid ballooning debt of Rs 1,512 crore. A whistleblower complaint finally exposed the rot—unmasking a scandal that’s shaken India’s startup and green energy world.

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