State-owned Power Finance Corporation Ltd (PFC) has lodged a formal complaint with the economic offences wing (EOW) of the Delhi police against Gensol Engineering Ltd, accusing the electric mobility firm of submitting falsified documents to obtain loans and misusing funds allocated for the purchase of electric vehicles (EVs).
The complaint follows PFC's internal investigations, red flags raised by credit rating agencies and a hard-hitting order from the market regulator Securities and Exchange Board of India (SEBI). PFC alleges that Gensol, promoted by Anmol Singh Jaggi and Puneet Singh Jaggi (the Jaggi brothers), forged letters purportedly from the State-run power financier and the Indian Renewable Energy Development Agency Ltd (IREDA) to misrepresent its repayment history and secure credit facilities. The issue came to light when rating agencies cross-verified these documents with the lenders, revealing the alleged forgery.
“PFC has filed a complaint with the EOW concerning the issuance of falsified documents,” the public sector financial institution said in a statement. “PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations.”
Gensol, the parent company of BluSmart, a popular all-electric ride-hailing service operating in Delhi National Capital Region (NCR) and Bengaluru, had secured loans worth Rs977.75 crore from PFC and IREDA between FY21-22 and FY23-24. These loans were meant to fund the purchase of 6,400 electric vehicles. However, investigations revealed that only 4,704 vehicles were procured, valued at Rs567.73 crore.
Last week, taking cognisance of allegations of falsification of documents by Ahmedabad-based Gensol, SEBI decided to appoint a forensic auditor to examine the company's books, citing serious financial irregularities, misappropriation of funds and misleading disclosures. SEBI barred the company promoters and chief executive officer (CEO), Anmol Singh Jaggi, and Puneet Singh Jaggi from the markets, besides restricting them from being appointed directors of any other listed company. It also put on hold the stock split announced by Gensol till further notice.
The SEBI interim order also disclosed alarming financial irregularities. It found that the Jaggi brothers had diverted funds meant for EV procurement to unrelated entities and for personal luxury purchases, including flats at the upscale DLF Camellias complex, where each apartment costs upwards of Rs70 crore. The SEBI order noted that Gensol operated more like a 'piggy bank' for its promoters, with no meaningful internal financial controls.
Of particular concern to PFC was the Rs587 crore sanctioned in January 2023 to Gensol for the procurement of 5,000 electric four-wheelers for BluSmart and 1,000 electric three-wheelers for cargo use. While the three-wheeler loan component remained unutilised, PFC disbursed Rs352 crore for 3,000 four-wheelers, of which 2,741 vehicles have so far been delivered and hypothecated to PFC.
Despite initial timely repayments — including Rs45 crore repaid to date — Gensol defaulted on dues in the fourth quarter of FY24-25. PFC invoked the debt service reserve account (DSRA) to recover payments for February and March 2025. As of 18 April 2025, PFC's debt of Rs307 crore remains outstanding.
To mitigate exposure, PFC says it has secured a range of collateral including pledges of Gensol’s shares and non-convertible debentures (NCDs), corporate and personal guarantees and liquid assets such as fixed deposits (FDs) and escrow balances.
Responding to queries regarding the forged documents flagged by CARE Ratings and ICRA, PFC categorically denied issuing any such correspondence. It has now initiated an internal investigation under its anti-fraud policy and is actively exploring further legal and financial recovery measures.
The SEBI order also exposed a lack of actual EV manufacturing activity at Gensol’s Pune facility, with only two or three labourers found on site. The location itself was discovered to be a leased property, raising further questions about the company’s operations and intentions.
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