New Delhi: The Central Bureau of Investigation (CBI) has registered an FIR against Gensol Engineering Ltd co-founders Anmol Singh Jaggi and Puneet Singh Jaggi, along with the company and its electric vehicle leasing arm Gensol EV Ltd, in an alleged ₹453.77 crore loan fraud case. The companies have been closely associated with BluSmart Mobility, an electric vehicle-based cab service that abruptly ceased operations earlier this year.
The CBI action follows a complaint and recommendation from the Indian Renewable Energy Development Agency (IREDA). The state-run lender had extended loans to the Gensol group for purchasing electric vehicles intended to be leased to BluSmart, as well as for executing solar power projects. According to the agency, the loan funds were allegedly used for purposes other than those for which they were sanctioned, including transfers to group companies, related parties and other entities.
The complaint cited findings from a forensic audit, which indicated probable diversion or misuse of around ₹225.89 crore at Gensol Engineering and ₹64.87 crore at Gensol EV Lease. Investigators are expected to examine the movement of the loan funds, identify the accounts and entities that received the money and determine whether the transactions were connected to the alleged misuse of the borrowed funds.
IREDA’s complaint also alleged the use of forged documents. According to the allegations, certain letters purportedly issued by IREDA were submitted to credit rating agencies. These documents allegedly stated that the borrowers had no overdue payments or repayment delays. The complaint, however, claimed that the accounts were already under financial stress at the time.
IREDA said it had recalled the loans, invoked the available securities and recovered ₹106.71 crore. According to the agency, as of June 30, 2026, the principal outstanding against Gensol Engineering stood at ₹453.77 crore, while ₹218.97 crore was outstanding against Gensol EV Lease.
The CBI has assigned the investigation to a Deputy Superintendent of Police posted with its Anti-Corruption Branch in New Delhi. The probe is expected to examine the alleged diversion of funds, the utilisation of loans, transactions involving related parties and the origin and use of the allegedly forged documents.
The case comes amid increasing regulatory scrutiny of financing, governance and financial disclosures in the electric mobility sector. Companies associated with BluSmart and their financial transactions have faced scrutiny at different levels. The CBI investigation will now seek to establish the flow of funds and determine whether the allegations made by IREDA are supported by evidence.
The allegations contained in the FIR have not been tested or established in court. The accused will have the opportunity to present their defence as the investigation progresses, and the final position will depend on the evidence collected by the investigating agency and subsequent court proceedings.
