Jobaaj Stories
Jaggi Brothers Accused of Misusing ₹262 Crore EV Loan for Personal Luxury: SEBI
SEBI Uncovers Serious Financial Misconduct :
India’s financial watchdog, the Securities and Exchange Board of India (SEBI), has accused Anmol Singh Jaggi and Puneet Singh Jaggi—promoters of Gensol Engineering Ltd and co-founders of BluSmart Mobility—of misusing a large loan meant for electric vehicle (EV) purchases.
According to SEBI’s interim order, the brothers allegedly diverted ₹262 crore that was supposed to be used for buying 1,700 electric vehicles. Instead, a significant portion of that money was used for personal expenses and luxury purchases.
Luxury Apartment and Golf Set Bought Using Loan Funds
The investigation revealed that ₹43 crore was spent on buying a luxury apartment in DLF Camellias, one of Gurugram’s most exclusive residential towers. Additionally, ₹26 lakh was used to buy a high-end golf kit. Other funds were reportedly used for foreign travel, foreign currency purchases, and transferring money to family members.
SEBI stated that these actions were “clear misuse” of investor funds and violated multiple regulations under the Companies Act and SEBI rules.
False Claims About EV Orders Misled Investors
SEBI also found that the Jaggi brothers made false and exaggerated claims to attract investor attention. At the Bharat Mobility Global Expo, they reportedly claimed BluSmart had received pre-orders for 30,000 EVs—a number that SEBI said was not supported by any real documentation.
These misleading statements caused a major spike in Gensol’s stock price, and many retail investors were misled into thinking the company had secured massive EV contracts.
Gensol and BluSmart Under the Scanner
Gensol Engineering is listed on India’s stock market and provides engineering and EV solutions. BluSmart, its affiliate, offers all-electric ride-hailing services in major Indian cities.
Following the release of SEBI’s findings, Gensol’s shares took a hit. Many investors are now demanding more transparency and accountability from the company’s leadership. SEBI has barred the Jaggi brothers from the securities market and banned them from holding director-level roles in any listed firm until further notice.
SEBI Takes Strong Action to Protect Investors
In its interim order, SEBI emphasized that these actions were necessary to protect the interests of investors and ensure that corporate leaders are held accountable. It has also ordered the recovery of misused funds and may consider further legal action depending on the outcome of a more detailed investigation.
Bigger Concerns About Startup Oversight
This case has raised broader questions about governance standards in India's startup ecosystem. Many experts say there is an urgent need for stricter audits, financial checks, and more transparency in how funds—especially those involving public investments—are handled.
If these safeguards are not put in place, it could shake investor confidence in the country's fast-growing tech and EV sectors.
