The Enforcement Directorate (ED) has reportedly detained BluSmart cofounder Puneet Singh Jaggi from a hotel in New Delhi, coinciding with raids on Gensol Engineering’s offices in Delhi, Gurugram, and Ahmedabad. The searches were conducted under the Foreign Exchange Management Act (FEMA).

According to sources cited by PTI, Puneet’s brother and fellow cofounder, Anmol Jaggi, is currently in Dubai. This follows SEBI’s recent interim order, which accused the brothers of fraudulently misusing company funds, treating them like a personal “piggybank.” Allegations include using Gensol funds to purchase luxury properties, such as a flat in DLF’s The Camellias, and investing in Ashneer Grover’s Third Unicorn.

The ED’s actions stem from SEBI’s findings, which state that the Jaggi brothers diverted loan funds—meant for BluSmart EV purchases and EPC contracts—to shell entities and personal acquisitions. These loans, totaling INR 977.75 Cr from Power Finance Corporation and IREDA, were intended to procure 6,400 EVs, but only 4,704 were actually purchased, with INR 262.13 Cr still unaccounted for.

Further complicating matters, the ED is also investigating the Jaggis’ possible involvement in the INR 20,000 Cr Mahadev Book betting app scam. The agency recently froze over 5 lakh Gensol shares, suspecting stock price manipulation via foreign portfolio investors, including Dubai-based Zenith Multi Trading DMCC. Authorities are trying to determine if the promoters were aware of the illicit funds involved.

This detention could severely impact BluSmart, which is already under pressure. Eversource Capital, once reportedly in talks to acquire BluSmart for INR 800–1,000 Cr, may now pull back due to the growing legal and financial turmoil. The valuation itself marked a 60% drop from BluSmart’s previous $300 million figure.

Adding to the crisis, BluSmart hasn’t paid March salaries and may struggle to pay April’s wages unless new funds are secured. Its operations remain suspended, pushing the company deeper into a cash crunch with no immediate revenue streams. A forensic audit by Grant Thornton is underway and could further expose mismanagement within the company.

Meanwhile, BluSmart cofounder Punit K Goyal has publicly distanced himself from the Jaggi brothers. The situation continues to unravel as regulators intensify scrutiny into both BluSmart and Gensol Engineering.

The Enforcement Directorate (ED) has reportedly detained BluSmart cofounder Puneet Singh Jaggi from a hotel in New Delhi, coinciding with raids on Gensol Engineering’s offices in Delhi, Gurugram, and Ahmedabad. The searches were conducted under the Foreign Exchange Management Act (FEMA).

According to sources cited by PTI, Puneet’s brother and fellow cofounder, Anmol Jaggi, is currently in Dubai. This follows SEBI’s recent interim order, which accused the brothers of fraudulently misusing company funds, treating them like a personal “piggybank.” Allegations include using Gensol funds to purchase luxury properties, such as a flat in DLF’s The Camellias, and investing in Ashneer Grover’s Third Unicorn.

The ED’s actions stem from SEBI’s findings, which state that the Jaggi brothers diverted loan funds—meant for BluSmart EV purchases and EPC contracts—to shell entities and personal acquisitions. These loans, totaling INR 977.75 Cr from Power Finance Corporation and IREDA, were intended to procure 6,400 EVs, but only 4,704 were actually purchased, with INR 262.13 Cr still unaccounted for.

Further complicating matters, the ED is also investigating the Jaggis’ possible involvement in the INR 20,000 Cr Mahadev Book betting app scam. The agency recently froze over 5 lakh Gensol shares, suspecting stock price manipulation via foreign portfolio investors, including Dubai-based Zenith Multi Trading DMCC. Authorities are trying to determine if the promoters were aware of the illicit funds involved.

This detention could severely impact BluSmart, which is already under pressure. Eversource Capital, once reportedly in talks to acquire BluSmart for INR 800–1,000 Cr, may now pull back due to the growing legal and financial turmoil. The valuation itself marked a 60% drop from BluSmart’s previous $300 million figure.

Adding to the crisis, BluSmart hasn’t paid March salaries and may struggle to pay April’s wages unless new funds are secured. Its operations remain suspended, pushing the company deeper into a cash crunch with no immediate revenue streams. A forensic audit by Grant Thornton is underway and could further expose mismanagement within the company.

Meanwhile, BluSmart cofounder Punit K Goyal has publicly distanced himself from the Jaggi brothers. The situation continues to unravel as regulators intensify scrutiny into both BluSmart and Gensol Engineering.