ED conduct raids at Gensol premises, detains co-promoter Puneet Jaggi

Gensol

The Enforcement Directorate (ED) on Thursday conducted raids against Gensol Engineering's premises and detained co-promoter Puneet Singh Jaggi from a Delhi hotel, news agency PTI reported citing official sources.

According to the report, the searches were carried out at company's premises in Delhi, Gurugram and Ahmedabad under the provisions of the Foreign Exchange Management Act (FEMA).

The sources told PTI that Puneet Jaggi was detained by the ED from a Delhi hotel while Anmol Jaggi is reportedly  in Dubai.

The promoter brothers of the company -- Anmol Singh Jaggi and Puneet Singh Jaggi -- are under the radar of the central investigation agency following a SEBI report against them for alleged financial misconduct and diversion of funds.

The ED action is based on the SEBI order which claimed that Gensol Engineering obtained loans from Power Finance Corporation and IRDEA Ltd for procurement of EVs and EPC contracts.

The company however diverted the funds for purchasing the assets in personal name of promoters or their relatives or in various shell entities floated by the group instead of utilizing these funds for the intended purposes.

Earlier, Jaggi brothers' BluSmart Mobility that operates EV cabs under the brand name BluSmart halted bookings since the Securities and Exchange Board of India (SEBI) report surfaced.

The markets regulator has also barred the brothers from accessing the securities market until further orders.

The sources further said that the central agency will soon file a criminal case of money laundering against the promoters once the Delhi Police economic offences wing (EOW) files an FIR in this case based on a complaint by the IREDA and Power Finance Corporation (PFC).