The Ministry of Corporate Affairs (MCA) has launched a formal investigation into Gensol Engineering Ltd and its affiliate BluSmart Mobility over serious allegations of corporate governance violations and financial misconduct. The probe, initiated under Section 210 of the Companies Act, 2013, will examine potential fund diversion and fraudulent disclosures, as outlined in a recent interim order by the Securities and Exchange Board of India (SEBI).
According to official sources, the investigation will scrutinize the companies’ books of accounts, bank transactions, and asset registers, with a report expected to be submitted to the government within three months.
The MCA’s action comes in the wake of SEBI’s interim findings from April 15, 2025, which highlighted multiple red flags in Gensol’s financial dealings. The regulator noted that Gensol allegedly misled investors, credit rating agencies, and lenders by submitting forged conduct letters purportedly issued by state-run lenders IREDA and PFC to mask lapses in its debt servicing obligations. Upon verification, both institutions denied issuing any such letters.
Further, SEBI’s probe revealed that funds borrowed by Gensol for purchasing electric vehicles were diverted for personal luxury expenditures. These included the purchase of a high-end apartment in The Camellias, DLF Gurgaon, in the name of a firm managed by Gensol’s Managing Director Anmol Singh Jaggi and his brother, Puneet Singh Jaggi, who are both listed as designated partners. Other misappropriated expenses included luxury items such as golf equipment, foreign travel, and personal shopping.
As a result of the interim findings, SEBI issued a restraining order against both Jaggi brothers, barring them from serving in key managerial positions and prohibiting their participation in the securities market until further notice.
The MCA’s probe is expected to provide a more comprehensive understanding of Gensol and BluSmart’s internal governance frameworks, particularly in light of their rapid growth and close operational linkages.
