Who are Jaggi Brothers? Anmol Singh Jaggi and Puneet Singh Jaggi founded Gensol Engineering, specializing in renewable energy and EV solutions. They also own BluSmart, an EV ride-hailing company.
Loan Misuse Gensol Engg. borrowed ₹978 Cr from the IREDA and PFC, primarily to purchase EVs for BluSmart.
Fraud Allegations – ₹260 Cr are unaccounted. – ₹50 Cr used to buy luxury property in The Camellias, DLF Gurgaon. – Instead of 6400 EVs, only 4700 EVs worth ₹567 Cr were delivered. – Loan money used for personal trips, watches, golf sets and cash transfers to relatives.
Lies to Investors The Jaggi Brothers stated that they received 30,000 orders for EVs and established a manufacturing plant in Pune. However, when NSE officials visited, they found the plant was not operational.
Misleading Information The company misled SEBI, credit rating agencies and investors by providing falsified documents regarding its debt servicing, raising concerns about the company's corporate governance.
Aftermath – 80% Share price Fall – ₹7,000 Cr Market Cap wiped out. – SEBI barred Jaggi Brothers from the market. – SEBI said they were running a listed public company as if it were a propriety firm.