India’s federal investigative agency has opened a criminal case against Gensol Engineering, Gensol EV Lease, and BluSmart cofounders Anmol Singh Jaggi and Puneet Singh Jaggi over allegations of diverting loans from state-run lender IREDA, a development that deepens the crisis engulfing the brothers’ business empire.
The Central Bureau of Investigation (CBI) registered the first information report on July 31 through its Anti-Corruption Branch in New Delhi. The charges include criminal conspiracy, cheating, forgery for cheating purposes, and presenting forged documents as genuine under multiple sections of the Bharatiya Nyaya Sanhita.
IREDA filed the complaint on July 23 through its general manager Jagdeep Singh. The lender pegged its total loss at ₹672.74 crore in principal outstanding, excluding interest and other charges, across both Gensol entities.
Forensic audits commissioned by IREDA found probable diversion or misutilisation of ₹225.89 crore at Gensol Engineering and ₹64.87 crore at Gensol EV Lease. The audit reports were submitted on January 20, 2026.
For a ₹267.79 crore loan meant to finance 3,000 commercial EVs for BluSmart’s ride-hailing fleet, only 1,549 vehicles were capitalised. Gensol Engineering transferred ₹358.06 crore to Go Auto for vehicles estimated to be worth ₹191.65 crore, with discrepancies surfacing in invoices, insurance records, and registrations. Under another ₹43.69 crore loan for 400 EVs, merely 18 vehicles were registered in Gensol Engineering’s name.
Funds linked to solar projects also came under scrutiny. A ₹192.87 crore loan for a 62 MW Maharashtra solar project saw ₹137.40 crore in receipts bypass the mandated trust account. An estimated ₹73.02 crore was diverted or misused. Similarly, a ₹121 crore loan for a 30 MW floating solar project for Damodar Valley Corporation saw probable diversion of ₹98.25 crore.
The audit flagged one transaction where ₹50 crore moved to Capbridge Ventures LLP and then funded a ₹42.94 crore payment to DLF for a luxury apartment at The Camellias.
IREDA also alleged that Gensol submitted forged no-dues letters to CARE Ratings and ICRA dated February 22 and February 27, 2025. A signature verification expert confirmed the documents were not genuine.
BluSmart suspended its cab-booking services on April 16. IREDA declared the accounts fraudulent on July 9 and reported the matter to the Reserve Bank of India the next day. Insolvency proceedings have begun against both Gensol entities, with recoveries totalling just ₹106.71 crore so far.
