According to the reports, the Configuration Directorate (ED) arrested Puneet Jaggi, co-founder of the All-Electric Cab Blusmart service, from a hotel in Delhi as part of his research on financial irregularities in Gensol Engineering Ltd.
The raids were carried out in multiple offices of the company in Delhi, Gurugram and Ahmedabad under the Interior Management Law (FEMA), in accordance with the Ians report.
The ED investigation follows an interim condemnatory order of Sebi, which accused the promoters of Gensol Anmol Singh Jaggi and Puneet Singh Jaggi to treat the company as its “Piggy Bank”. Sebi said there were no adequate financial controls and that the promoters had diverted the money from loans for personal use or for relationship entities.
Also read:Gensol Engineering Beats A RS 307 million rupees, exploring all action, options: PSU PFC
PFC presents the police complaint about claims for false loan services
Power Finance Corporation (PFC), owned by the Government, filed a complaint with the Wing of Economic Crimes of the Delhi Police, accusing Gensol or presenting counterfeit documents to obtain loans for purchases of electric vehicles (EV). The company allegedly forged PFC and IREDA letters to falsely show regular loan refunds. The deception came to light after credit rating agencies begged to verify those letters with the lenders.
In his official statement, PFC confirmed that an internal investigation is also underway under its anti-fraud policy to track the missing delivery receipts for the EVs ending by the company. “PFC undertakes to safeguard your interests and guarantee the recovery of loans while defending transparency,” said the PSU.
Also read:GENSOL CRISIS: How the promoters of GENSOL-BLUSMART moved funds to feed their luxury lifestyle
RS 977 Crore Use of EV loans under the scanner
Between the FY22 and the FY24, Gensol obtained loans for a total of RS 977.75 million rupees of PFC and IREDA, or which were assigned 663.89 million rupees for the purchase of 6,400 EVs. However, the company admitted to having acquired only 4,704 vehicles worth RS 567.73 million rupees, as verified by the GOS supplier. Sebi’s findings show RS 262.13 million rupees remains without accounting.
Gensol, the parent firm of Fire Mart, which operates the green taxi services in Delhi NCR and Bengaluru, has not yet issued an official statement about the findings of the action of O Sebi.