Under SEBI Lens, Jaggi Brothers Resign From Gensol

Gensol Engineering MD Anmol Singh Jaggi and director Puneet Singh Jaggi today tendered their resignations and stepped down from the company. 

In their resignation letters, the directors said they were resigning due to SEBI’s directions.

In an interim order last month, the markets regulator barred the Jaggi brothers from holding any directorial or key managerial positions in the listed companies.

“…I am hereby resigning from the post of Whole-time Director of Gensol Engineering Limited with effect from the close of business hours on May 12, 2025. Further, I declare that I am resigning due to the direction given under SEBI Interim Order dated April 15, 2025,” said Puneet Singh Jaggi in his resignation letter.

SEBI, in its interim order, said that the Jaggi siblings misused company funds and treated Gensol as their “piggybank”. 

The market regulator, in its order, noted that the duo allegedly diverted proceeds of INR 978 Cr loan, obtained for purchasing EVs for Gensol’s related entity and EV ride-hailing startup BluSmart, to purchase a luxury apartment in DLF’s “The Camellias” and investing in other startups, among others. 

The aftermath saw the Enforcement Directorate (ED) raiding multiple premises linked to Gensol and detaining promoter and BluSmart cofounder Puneet Singh Jaggi in connection with alleged forex violation. Later, Puneet received interim protection as the HC directed the Delhi Police to serve a seven day notice to Puneet before his arrest.

Meanwhile, the agency has also reportedly frozen over 5 Lakh shares of Gensol Engineering over suspicions that a Dubai-based company manipulated the prices of the Gensol stock using “tainted funds” from the Mahadev betting app scam. 

Just days ago, the Delhi High Court ordered the seizure of 129 EVs leased by Gensol to BluSmart, following a petition by lender STCI Finance Ltd. The HC also restrained Gensol and BluSmart from creating third-party rights over an additional 220 EVs, further tightening the financial noose around the EPC and the EV ride-hailing companies. 

In another blow, the Securities Appellate Tribunal (SAT) last week rejected Gensol’s appeal for a stay on the SEBI order, emphasising the gravity of the allegations and the need for a thorough investigation. 

Following SEBI’s order, BluSmart, which was cofounded by Jaggi brothers, suspended its operations. More than 10,000 drivers associated with BluSmart have been left in the lurch because of it, while 800 full-time employees haven’t been paid salaries since March this year.