The Delhi police have received a complaint from the government-owned Power Finance Corporation Ltd (PFC) against Gensol Engineering Ltd, which is supported by the Jaggi brothers, for allegedly submitting bogus paperwork in order to get loans for the purchase of electric vehicles (EVs).

“The Delhi police’s Economic Offences Wing has received a complaint from PFC about the distribution of forged papers. PFC is dedicated to protecting its interests and making sure that the loan is repaid while maintaining openness in its business practices,” the public sector financial firm said in a statement.

In order to demonstrate that it was making regular loan payments, Gensol, the parent company of the all-electric vehicle (EV) app BluSmart, which offered green taxi services, reportedly falsified letters from its two lenders, PFC and Indian Renewable Energy Development Agency Ltd (IREDA). But when the credit rating companies started checking the letters with the lenders, the allegation was revealed.

According to the public sector undertaking, the issue is being investigated internally as part of its anti-fraud program. The monitoring of missing delivery receipts for EVs sponsored by the PFC will be the main focus of the inquiry.

In order to operate an online green taxi service that had gained popularity in Bengaluru and Delhi NCR, Gensol had borrowed Rs 978 crore from PFC and the Renewable Energy Development Agency (IREDA) to purchase electric cars.

More than Rs 200 crore of the loans, which were intended to be used for the purchase of EVs, were transferred to other businesses connected to the founders via a vehicle dealership. A portion of the funds were spent on upscale acquisitions, such as apartments at DLF Camellias, where apartments start at Rs 70 crore.

According to a SEBI inquiry, Gensol has failed to account for Rs 262.13 crore of the total.

SEBI published a thorough interim ruling detailing the issues at Gensol on April 15, 2025. According to the ruling, Gensol’s proprietors, Anmol and Puneet Singh Jaggi, had seen the business as their own “piggy bank.” The promoters had transferred loan funds to themselves or affiliated companies, and there were inadequate financial controls in place.

Between FY22 and FY24, Gensol obtained loans from IREDA and PFC totalling Rs 977.75 crore. Specifically, Rs 663.89 crore was allocated for the acquisition of 6,400 EVs. However, according to supplier Go-Auto, the business acknowledged purchasing only 4,704 cars for a total of Rs 567.73 crore.

According to the SEBI probe report, Gensol Engineering Ltd.’s electric vehicle (EV) factory in Pune had “no manufacturing activity” and just two to three workers were on the site, which was leased.