The corporate affairs ministry is reportedly considering a formal probe into Gensol Engineering and its related entity BluSmart over alleged corporate governance violations, including fund diversion and misuse of public sector loans. A decision on whether to initiate an inquiry is expected within a fortnight, according to officials cited in a report by The Economic Times.
The ministry is said to be examining material available in the public domain, along with certain information it has independently received. The focus, officials quoted in the ET report, is to assess whether promoter funds were misused for personal gains—such as the purchase of a luxury apartment, transfers to family members, and routing money into privately held businesses linked to the promoters.
Earlier this week, the Securities and Exchange Board of India (Sebi) barred Gensol promoters Anmol and Puneet Jaggi from participating in the capital markets. The order cited alleged falsification of documents and diversion of funds, and called for a forensic audit into the company’s financials. BluSmart, the all-electric ride-hailing platform promoted by the same individuals, began shutting operations shortly after the Sebi order.
Business Today could not independently verify the claims made in the report.
At the centre of the controversy is the alleged misutilisation of a ₹977.75 crore loan package availed by Gensol from state-backed Indian Renewable Energy Development Agency and Power Finance Corporation. Of that, ₹663.89 crore was specifically meant for the purchase of 6,400 electric vehicles (EVs) that were to be leased to BluSmart.
However, Gensol reportedly told Sebi in a February response that only 4,704 EVs had been procured. EV supplier Go-Auto confirmed delivering that number of vehicles for a total value of ₹567.73 crore. Given that Gensol was also required to contribute an additional 20% equity, the expected outlay for the vehicles stood at ₹829.86 crore—leaving nearly ₹262 crore reportedly unaccounted for, according to ET.
As of now, no notices have been issued to either company. If the ministry’s preliminary assessment confirms governance concerns, the matter could escalate to a full investigation, possibly led by the Serious Fraud Investigation Office (SFIO).
