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The Central Bureau of Investigation (CBI) has registered a case against Gensol Engineering Ltd, its subsidiary Gensol EV Lease, and BluSmart EV taxi service founders Anmol Singh Jaggi and Puneet Singh Jaggi over allegations of causing a loss of more than ₹672 crore to the state-run Indian Renewable Energy Development Agency (IREDA).
The CBI action marks a fresh escalation in the scrutiny of Gensol's electric-vehicle financing. The case follows a complaint by IREDA alleging that loans sanctioned to Gensol Engineering and Gensol EV Lease to procure electric vehicles for BluSmart's ride-hailing operations were misappropriated and diverted for other purposes.
The alleged exposure comprises ₹453.77 crore attributable to Gensol Engineering and ₹218.97 crore attributable to Gensol EV Lease, excluding interest and other applicable charges.
The CBI has registered the case under provisions of the Bharatiya Nyaya Sanhita relating to criminal conspiracy, cheating, forgery for cheating and using a forged document or electronic record as genuine, according to a PTI report.
SEBI's first red flags
The roots of the case go back to SEBI's examination of Gensol.
In its April 15, 2025 interim order, SEBI said it had received a complaint in June 2024 relating to alleged share-price manipulation and diversion of funds from Gensol and subsequently examined the company's affairs.
The regulator also recorded that credit-rating agencies CARE Ratings and ICRA had downgraded Gensol's ratings to “D” in March 2025 following concerns over debt servicing.
One of the most significant findings concerned documents submitted to rating agencies. SEBI said Gensol had provided rating agencies with conduct letters purportedly issued by IREDA and Power Finance Corporation (PFC), stating that the company was regular in servicing its loans.
When the agencies sought confirmation, both lenders denied issuing the letters. Gensol had also submitted an NOC purportedly issued by its lenders while seeking withdrawal of its ratings, which IREDA and PFC likewise denied issuing.
The issue was not limited to the documents.
SEBI's examination also focused on loans obtained from IREDA and PFC for purchasing electric vehicles. In its July 2025 confirmatory order, SEBI said Gensol had obtained ₹663.89 crore in nine tranches to purchase 6,400 EVs. Against that, Gensol reported procuring only 4,704 vehicles, while the stated supplier, Go-Auto, confirmed sales of those 4,704 vehicles for ₹567.73 crore.
SEBI's examination also traced part of the loan funds through related entities to the purchase of an apartment in DLF's The Camellias project in Gurugram. SEBI's examination treated the gap between the financing and the vehicles actually procured as raising concerns about diversion or misuse of funds.
These were prima facie findings in regulatory proceedings, rather than a criminal court determination.
On May 12, 2025, Gensol Engineering announced that Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi had resigned.
IREDA's loan exposure turns into a fraud classification
The lender's disclosures showed how the issue subsequently moved from regulatory scrutiny to recovery action.
IREDA's disclosures list proceedings before the Debt Recovery Tribunal and insolvency applications against Gensol Engineering and Gensol EV Lease.
On July 10, 2026, IREDA informed the stock exchanges that the Gensol Engineering account, with ₹453.77 crore outstanding, had been declared fraud on grounds including misappropriation and criminal breach of trust, and forgery with the intention to commit fraud by making false documents and/or electronic records.
The Gensol EV Lease account, with ₹218.97 crore outstanding, was also declared fraud for “misappropriation and criminal breach of trust”, according to IREDA. The lender said both accounts had been reported to the Reserve Bank of India under the applicable fraud-risk framework. It had already made provisions equivalent to 85% of the outstanding amounts as of March 31, 2026.
That put the combined outstanding exposure at ₹672.74 crore — broadly the figure now cited in the CBI case.
What the CBI complaint alleges
The CBI complaint brings together the earlier concerns over Gensol's financing while adding allegations about the handling of the funds and documents. According to PTI, IREDA's complaint alleges that the loans sanctioned for procuring EVs for BluSmart were diverted for purposes other than those for which they were sanctioned.
The complaint also alleges that forged letters purportedly issued by IREDA were submitted to credit-rating agencies concerning the status of Gensol's loans and withdrawal of ratings. IREDA told the CBI that the letters had not been issued by its officials.
IREDA also alleged that a forensic audit found funds being transferred to related entities as loans or advances, or being used to repay earlier loans or advances, rather than being deployed for the sanctioned purpose.
PTI further reported that the IREDA complaint referred to financing from 15 banks and financial institutions, including PFC, Canara Bank, IDFC Bank and ICICI Bank.
These are allegations contained in the complaint and FIR and have not been established by a court.
Gensol Engineering and the other accused persons did not immediately respond to requests for comment, PTI reported.
The ED angle
The Gensol financing controversy has also drawn the Enforcement Directorate (ED) into the matter. SEBI's examination had earlier flagged a transaction involving an apartment in DLF's The Camellias project in Gurugram as part of its investigation into the use of Gensol's loan funds.
In January 2026, the ED provisionally attached the DLF Camellias apartment, valued at approximately ₹40.57 crore, along with bank balances of various Gensol group companies totalling about ₹14.28 crore.
The ED alleged that a portion of loans received from public-sector institutions and financial institutions was diverted through Go Auto and other related companies for purposes other than business and for personal gain.
