Anmol Singh Jaggi, once hailed as a trailblazer in India’s renewable energy landscape, is now at the center of a significant controversy following a recent ruling by the markets regulator. Known for co-founding BluSmart Mobility, India’s inaugural all-electric ride-hailing service in 2019, his esteemed reputation is now marred by allegations of fraudulent activities involving Gensol Engineering, a renewable energy firm.
Allegations of Fraud and Misuse of Funds
The interim order from the Securities and Exchange Board of India (SEBI) outlines how Anmol, alongside his brother Puneet Singh Jaggi, allegedly exploited the publicly listed company for personal gain. The brothers are accused of misusing institutional loans, engaging in fund laundering through interconnected entities, and living extravagantly at the expense of minority shareholders.
- Systemic fraud: The Jaggi brothers reportedly created a complex web of shell companies, diverting hundreds of crores from Gensol, ultimately harming thousands of small investors.
- Dramatic decline: Gensol’s stock price plummeted by over 70% in just two months, a stark contrast to its astronomical rise of nearly 3,600% from 2022 to early 2024.
Mismanagement of Institutional Loans
SEBI’s investigation revealed that Gensol secured ₹663.89 crore in loans from IREDA and PFC to acquire 6,400 electric vehicles, yet only delivered 4,704 EVs, valued at ₹567.73 crore. The remaining ₹262.13 crore allegedly vanished through complex transactions that seemingly benefited the Jaggi brothers personally.
Central to this scheme was Wellray Solar Industries, a company that, despite being nominally owned by a former Gensol employee, acted as a major conduit for fund transfers. Wellray received ₹424.14 crore from Gensol over two fiscal years, funneling ₹246.07 crore to companies associated with the Jaggi brothers.
Lavish Spending and Lifestyle
The Jaggi brothers reportedly used misappropriated funds to finance a lavish lifestyle, including:
- ₹26 lakh on a golf set
- ₹1.86 crore for foreign currency exchange
- ₹10.36 lakh for spa treatments
- ₹50 lakh invested in a startup founded by former BharatPe co-founder Ashneer Grover.
One significant example of fund diversion involved a luxury apartment purchase at DLF Camellias in Gurugram. A loan of ₹71.41 crore from IREDA, combined with other funds, was maneuvered to facilitate this extravagant acquisition.
Market Manipulation and Corporate Governance Failures
SEBI’s findings reveal extensive market manipulation, with Wellray conducting 99% of its trading in Gensol shares. This included transactions valued at over ₹338 crore between November 2022 and November 2024, funded by Gensol itself.
Additionally, Gensol’s capital raising initiatives were tainted by manipulation, with ₹10 crore funneled through Wellray to the Jaggi brothers, only to be returned to Gensol disguised as a promoter investment.
Investigations and Potential Consequences
SEBI’s scrutiny began after a complaint surfaced in June 2024 concerning share price manipulation and fund misappropriation. Investigators found that Gensol submitted forged documents to lenders, falsely claiming proper debt servicing.
A recent visit by NSE officials to Gensol’s Pune facility revealed minimal manufacturing activity, contradicting public claims of receiving 30,000 pre-orders for new electric vehicles. Reports indicate that only 10 units were produced, primarily for testing.
Legal Ramifications and Future Outlook
Legal experts predict that the findings could lead to severe repercussions for the Jaggi brothers, including:
- Potential loan recalls by institutional lenders
- Legal actions under the Prevention of Money Laundering Act and the Companies Act
- Risk of hostile takeovers or forced board restructuring due to diluted promoter shareholding
With the investigation now underway, the future of the Jaggi brothers’ once-promising green energy empire hangs in the balance, alongside the interests of Gensol’s over 100,000 retail shareholders.
As the forensic audit progresses over the next six months, both Anmol and Puneet Jaggi face an uncertain future, jeopardizing their positions in the renewable energy sector and raising questions about the sustainability of their ventures, including BluSmart Mobility.
