New Delhi– The Enforcement Directorate (ED) has requested the Bureau of Immigration to issue a look-out circular (LOC) against Puneet Singh Jaggi and Anmol Singh Jaggi, promoters of Gensol Engineering Ltd, amid an ongoing investigation into the alleged diversion of funds from the fraud-hit company, reports said Friday.
Gensol, which raised substantial loans from financial institutions, is suspected of diverting a portion of these funds overseas in violation of the Foreign Exchange Management Act (FEMA). Investigators are also examining other companies linked to the Jaggi brothers, which may have served as front entities to route funds to foreign accounts, according to a report by NDTV Profit.
Anmol Singh Jaggi is reportedly in Dubai, while Puneet Singh Jaggi was questioned by ED officials for over six hours on Thursday. Earlier reports suggested Puneet had been taken into custody, but a senior ED official later denied any arrest or detention.
The ED has conducted searches at multiple locations connected to the Jaggi brothers, including premises in Delhi, Gurugram, and Ahmedabad. Authorities are investigating suspected foreign exchange violations involving unauthorized remittances estimated between Rs 200 crore and Rs 300 crore.
The government-owned Power Finance Corporation Ltd (PFC) has also filed a complaint with Delhi Police, accusing Gensol Engineering of submitting false documents to secure loans for purchasing electric vehicles (EVs). The PFC is conducting an internal review under its anti-fraud policy, focusing on missing delivery receipts for EVs financed by the company.
Gensol reportedly secured loans totaling Rs 978 crore from PFC and the Indian Renewable Energy Development Agency (IREDA) to fund a green taxi service operating in Delhi NCR and Bengaluru. However, over Rs 200 crore of these funds were allegedly routed through a car dealership and transferred to other entities linked to the promoters. A portion of the funds was used for luxury purchases, including high-end apartments in DLF Camellias, where units start at Rs 70 crore.
A Securities and Exchange Board of India (SEBI) investigation found Gensol unable to account for Rs 262.13 crore. On April 15, 2025, SEBI released an interim order detailing significant lapses in financial governance at the company. The order stated that the Jaggi brothers treated Gensol as their personal “piggy bank,” lacking proper financial controls and diverting loan funds to themselves or related entities.
(Source: IANS)
