The Gensol Engineering Scandal: How India’s EV Darling Lost Its Spark

What happens when a green dream turns grey? This is the story of a solar startup, an electric taxi empire, and a crash that left thousands stunned — and investors scorched.

Chapter 1: A Green Dream Takes Root

In 2012, two brothers from Gujarat — Anmol Singh Jaggi and Puneet Singh Jaggi — launched Gensol Engineering, a modest solar consultancy.

The world was just waking up to renewable energy, and here was a company helping businesses transition to solar. No drama, no headlines — just clean, grounded execution.

But then came the leap.

Gensol transformed. From consulting, it dived into EV manufacturing, vehicle leasing, charging infrastructure, and even launched BluSmart — India’s first all-electric ride-hailing platform.

The Jaggi brothers weren’t just building an EV company. They were building an ecosystem — and that caught everyone’s attention.

Chapter 2: The Rise That Dazzled the Markets

Between 2020 and 2023, Gensol’s stock exploded.
From under ₹100 to over ₹1,600.

The financials? Equally dramatic:

(Source: Livemint)

It was hard not to fall for the story — clean tech, profitability, explosive growth, and ambitious vision.

The investor list started to read like a who’s who of Indian markets — even Ashneer Grover, who invested ₹15 crore into BluSmart and publicly endorsed the venture.

This wasn't a penny stock. It was a rocket ship — until the engines started smoking.

Chapter 3: The Cracks Beneath the Gloss

By early 2024, murmurs were growing.

• Why were cash flows weakening while profits surged?

• Why was Gensol doing so much business with obscure private firms?

• And who really owned those firms?

It didn’t take long before SEBI stepped in — and what they found was jaw-dropping.

Chapter 4: SEBI Cracks the Code

In April 2025, SEBI dropped an interim order that read like a crime thriller:

• ₹975 crore in loans meant for EV purchases were allegedly diverted.

• ₹42 crore of it went into a luxury apartment for the promoters.

• Their EV manufacturing plant in Pune, which was heavily publicised, was found almost deserted — just 2–3 workers were present.

• Gensol was allegedly cycling money between related-party shell firms — firms that were run by the same people behind Gensol itself.

(Source: SEBI Order, NDTV, TOI)

This wasn’t just a lapse in compliance — it was an orchestrated deception.

Chapter 5: The Fallout

• Anmol and Puneet Jaggi were barred from accessing capital markets.

• The Enforcement Directorate raided Gensol's offices, seizing laptops and records.

• NFRA (India’s audit regulator) launched a probe into Gensol’s auditors.

• IREDA, a government-backed lender, filed a bankruptcy application over ₹219 crore in unpaid loans.

(Source: Moneycontrol, Reuters)

Meanwhile, the stock plummeted over 90% from its peak.

Chapter 6: The Real Victims Were Quiet

Thousands of retail investors — salaried professionals, first-time equity buyers, dreamers of the “EV boom” — saw their wealth disintegrate.

They didn’t invest in fraud. They invested in a vision.
But that vision was smeared with misgovernance, inflated books, and a shocking absence of internal checks.

The most painful part? It could have been avoided.

Chapter 7: The Bigger Lesson

This isn’t just about one company.
It’s a reminder that in markets, trust is everything.

• Flashy earnings mean nothing without cash flow.

• “Green” doesn’t always mean “clean.”

• And governance isn't optional — it's foundational.

In the end, this wasn’t just about money.

It was about trust, and how quickly it can be lost.

Stay informed. Stay skeptical. Stay invested — but with eyes wide open.

A Thought Before You Go...

You absolutely can build wealth on your own — there’s more information than ever, and tools are at your fingertips.

But what if you didn’t have to carry the weight of researching, rebalancing, or worrying about what’s right and what’s noise?

At Fincare, we help people like you grow and protect their wealth using a thoughtful mix of Mutual Funds, PMS, and AIFs — tailored, transparent, and tightly aligned with your goals.

We take care of the back-end, so you can focus on the front row of life — your family, your peace, your time.

If you ever feel the need for a second brain for your money — we’re right here. Just reply.