From Loan Diversion To Forged Letters: CBI Books BluSmart Founders In ₹672 Cr IREDA Case

The CBI has registered an FIR against Gensol Engineering, Gensol EV Lease, and BluSmart founders Anmol Singh Jaggi and Puneet Singh Jaggi over the alleged diversion and misappropriation of loans extended by state-run IREDA. 

Anmol and Puneet Jaggi, who founded Gensol Engineering in 2007, also cofounded EV ride-hailing startup BluSmart. The startup was initially incorporated as Gensol Mobility in October 2018 before being renamed Blu-Smart Mobility the following year. 

BluSmart suspended its cab-booking services on April 16 amid the widening crisis at Gensol. Its app subsequently stopped working on both Android and iOS, months after the startup halted its operations. 

The CBI’s Anti-Corruption Branch in New Delhi registered the FIR on July 31 under Section 61(2), read with Sections 318(4), 336(3), and 340(2) of the BNS. These provisions relate to criminal conspiracy, cheating, forgery for the purpose of cheating, and using a forged document or electronic record as genuine. 

The FIR, which also names unidentified persons as accused, was registered following a complaint filed by IREDA general manager and principal nodal officer Jagdeep Singh on July 23. 

IREDA alleged that loans extended to the two Gensol entities were diverted from their intended purposes and that forged documents were submitted to credit rating agencies. 

The allegations are based largely on forensic audits commissioned by IREDA. The audit reports, submitted on January 20, 2026, estimated probable diversion or misutilisation of ₹225.89 Cr at Gensol Engineering and ₹64.87 Cr at Gensol EV Lease. 

Irregularities In EV Purchases

IREDA sanctioned and disbursed a ₹267.79 Cr loan to Gensol Engineering to finance the purchase of 3,000 commercial EVs, which were to be leased to BluSmart Mobility for its ride-hailing business.

However, the forensic audit found that only 1,549 vehicles had been capitalised. According to the complaint, Gensol transferred ₹358.06 Cr to Go Auto across multiple tranches against vehicles estimated to be worth ₹191.65 Cr.

The audit also identified discrepancies in invoices, insurance records, and vehicle registrations.

Of the 2,398 purchase invoices provided for verification, only 1,525 were recorded in Gensol Engineering’s books, while the remaining 873 were unaccounted for. Besides, 524 of the invoices did not appear in the company’s GSTR-2B filings.

The audit found instances where vehicles were registered before the invoice date, insured before being invoiced, or registered without valid insurance.

It also found that only 1,533 EVs financed under the project were exclusively hypothecated to IREDA, while the remaining vehicles were registered in the names of other financiers.

Under a separate ₹43.69 Cr loan sanctioned and disbursed for the purchase of 400 EVs, only 18 vehicles were registered in Gensol Engineering’s name. The remaining 382 were registered in the names of other parties, according to the complaint.

The audit also found that two of the vehicles submitted for verification were motorcycles or scooters instead of electric cars. It concluded that no assets were created using the loan and that the entire project disbursement had been diverted.

The complaint further flagged transactions in which funds transferred to vendors allegedly flowed back to Gensol or its group entities.

It cited one instance in which ₹50 Cr transferred to Capbridge Ventures LLP was subsequently used to make a ₹42.94 Cr payment to DLF towards the booking of a luxury apartment at The Camellias.

Solar Project Funds Under Lens

IREDA also alleged the diversion of funds from loans sanctioned to Gensol Engineering for solar EPC projects.

For a ₹192.87 Cr loan linked to a 62 MW solar project awarded by Maharashtra State Power Generation Company (MAHAGENCO), the forensic audit found that ₹137.40 Cr of project receipts was not routed through the designated Trust and Retention Account, as required under the loan agreement.

The audit estimated probable diversion or misutilisation of ₹73.02 Cr in the project.

Similarly, in the case of a ₹121 Cr loan for a 30 MW floating solar project awarded by Damodar Valley Corporation (DVC), the audit estimated probable diversion or misutilisation of ₹98.25 Cr.

It also found that ₹91.16 Cr of receipts from DVC was not routed through the designated account, according to the complaint.

Gensol EV Lease Transactions

IREDA sanctioned a ₹513.89 Cr loan to Gensol EV Lease to finance the purchase of 3,800 commercial EVs, of which ₹171.30 Cr was released in the first tranche.

The forensic audit found that ₹219.30 Cr, including the promoters’ contribution, was received by Gensol EV Lease, following which ₹219.27 Cr was transferred to various entities.

Of the ₹171.73 Cr transferred to Go Auto, ₹127.90 Cr remained recorded as an advance in Gensol EV Lease’s books, according to the FIR.

The audit identified probable diversion or misutilisation of ₹64.87 Cr in the project. This included ₹44.73 Cr transferred to group entities, ₹11.14 Cr transferred to entities unrelated to the project, ₹6.94 Cr paid to Ultravera Industries as appraisal fees, and ₹2.06 Cr transferred to Gensol Engineering.

The audit also flagged ₹2.42 Cr in lease rentals from BluSmart that was allegedly not routed through the designated account.

Alleged Forgery Of IREDA Letters

The CBI is also investigating allegations that Gensol submitted forged IREDA letters to CARE Ratings and ICRA.

The letters purportedly stated that there were no overdue amounts or unpaid instalments, no delay in repayments, and that the company’s loan account was standard and regular. However, IREDA said Gensol was in default at the time and its account had already been categorised as a special mention account.

IREDA also said the letters dated February 22 and February 27, 2025, were not issued by its officials. A signature verification expert concluded that the purported signature on the documents was forged.

IREDA subsequently recalled the loans and recovered ₹106.71 Cr from the two companies – ₹79.38 Cr from Gensol Engineering and ₹27.33 Cr from Gensol EV Lease. Their accounts were classified as non-performing assets, and insolvency proceedings were initiated against both entities.

As of June 30, Gensol Engineering had principal dues of ₹453.77 Cr, while Gensol EV Lease owed ₹218.97 Cr. IREDA claimed that the combined principal outstanding of ₹672.74 Cr, excluding interest and other charges, represented the loss suffered by it.

IREDA declared the accounts fraudulent on July 9 and reported the matter to the RBI the following day.

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