CBI files FIR against Gensol, BluSmart founders over alleged ₹672-crore loss to IREDA
The Central Bureau of Investigation (CBI) has registered a case against Gensol Engineering Limited, Gensol EV Lease Limited, and their promoters, among others, over an alleged loss of ₹672.74 crore to the Indian Renewable Development Agency Limited (IREDA). The case was filed following a complaint by IREDA, which accused the companies of misappropriating funds.
The First Information Report (FIR) names Anmol Singh Jaggi and Puneet Singh Jaggi, who co-founded Gensol Engineering and the electric mobility ride-hailing service BluSmart. The two are among the key accused in the case, which also includes the companies themselves and other associated entities.
According to IREDA's complaint, the principal amount outstanding from Gensol Engineering stands at ₹453.77 crore, while that from Gensol EV Lease Limited is ₹218.97 crore. These figures exclude interest liabilities. IREDA had extended financial assistance to Gensol Engineering for the procurement of electric vehicles and for executing Engineering, Procurement, and Construction (EPC) projects in the solar sector. The loans were secured through hypothecation of vehicles purchased with the disbursed funds, along with a charge on lease rentals receivable from lessees.
The CBI's action comes after investigations by the Securities and Exchange Board of India (SEBI) revealed alleged fraudulent activities by the borrower and its associated entities. These activities are said to include the misappropriation of funds provided by IREDA. The FIR further notes that besides IREDA, 15 banks and financial institutions — including Power Finance Corporation Limited, Canara Bank, HDFC Bank, and ICICI Bank — had extended loans to Gensol Engineering.
Separately, a Corporate Insolvency Resolution Process is currently underway against the borrower under the National Company Law Tribunal (NCLT). The development marks a significant step in the investigation into the alleged financial irregularities, which have implications for the renewable energy sector and the lenders involved.
IREDA, a public sector undertaking under the Ministry of New and Renewable Energy, provides financial assistance for renewable energy and energy efficiency projects. The alleged loss to the agency raises questions about due diligence and monitoring of such loans, though the matter is sub judice. The CBI will conduct a thorough investigation, and all accused are presumed innocent until proven guilty.
