Business · India Bureau
CBI files case against Gensol, BluSmart founders over ₹672 crore IREDA loan loss
The Central Bureau of Investigation has registered a case against Gensol Engineering Limited and BluSmart founders Anmol Singh Jaggi and Puneet Singh Jaggi following allegations of misappropriating funds extended by the Indian Renewable Development Agency for electric vehicle procurement.
LSN India ·
The CBI action stems from a complaint filed by IREDA, which had sanctioned loans to Gensol Engineering Limited and its subsidiary, Gensol EV Lease Limited, to procure electric vehicles for the BluSmart ride-hailing service. According to the agency's allegations, the funds were diverted for purposes other than those authorised, resulting in substantial financial losses.
The investigation centres on alleged misappropriation totalling ₹672 crore, comprising ₹453.77 crore attributed to Gensol Engineering Limited and ₹218.97 crore to Gensol EV Lease Limited, excluding interest and other charges. The complaint was registered by IREDA, a key government institution supporting renewable energy projects in the country.
The case marks a significant development in scrutiny of the electric vehicle sector in India, which has witnessed rapid growth and significant capital commitments from financial institutions. The BluSmart ride-hailing service has been a prominent entrant in India's EV taxi market, competing in major urban centres including Delhi.
No immediate statement was available from Gensol Engineering, BluSmart, or the accused individuals regarding the CBI investigation. The probe is expected to examine the utilisation of funds and the circumstances surrounding the alleged diversion of resources from their intended purpose.