India market regulator launched an investigation Tuesday at Gensol Engineering after finding alleged misuse of electric vehicle loans. Blusmart, a journey with Gensol -linked travel greeting that was once seen as a developing Uber rival in the South Asian market, is also involved in the investigation.
India’s Insurance and Exchange Board (SEBI) detained the founders of Gensol Engineering, Anmol Singh Jaggi and work Singh Jaggi, from holding key positions in the listed public company and participating in the securities market while the agency investigates. The Jaggi brothers also co-founded Blusmart mobility.
Anmol Singh Jaggi told Techcrunch that the company was “fully cooperative” with the Indian regulator and “joining all the documents and facts needed to clarify”.
“This is just a temporary step, not a final decision, and I am sure that after everything is properly reviewed, our position will be clear. We have always believed in doing responsibly responsibly, and that will not change,” Jaggi said.
According to his temporary order, the regulator accused the Jaggi brothers of redesting the considerable amounts of credit for personal use, including the purchase of luxury real estate on the outskirts of the capital of India.
The regulator said engineer Gensol received a term of 9.78 billion Indian rupees (about $ 114 million) from the state -owned Indian Energy Development Agency and the Energy Finance Corporation. From this, 6.63 billion rupees were set for the purchase of 6,400 EV to rent in Blusmart. However, the company won only 4,704 EV for 5.68 billion rupees, the regulator noted in its order (PDF).
“Some of these funds were then used for unrelated purposes with the purpose/objective of sanctioned loans, which included (i) the personal expenses of the promoter, including the purchase of high -level real estate;
Gensol previously denied claiming for debt payments. However, the regulator quoted information from the lenders and said there were “numerous predetermined cases” from the company based Gujarat.
“The promoters were running a public company listed as if it were a owner’s firm,” the regulator claimed in order.
The order comes over a month after credit rating agencies deducted Gensol, raising concerns about delays in company debt service and corporate governance practices.
Meanwhile, Blusmart, a client of Gensol and the entity that his co -founders share, is fighting due to the increase in cash burn and lack of external capital. The beginning ended his service in Dubai, which was launched last year, and is currently exploring ways to keep his business in India, which includes Delhi-NCR, Bengaluru and Mumbai.
The beginning of the journey greeting planned to enter a fleet partner for his Uber arch rival, the Indian Economic Newspaper Times reported earlier this week, citing people famous with developments.
Founded at the end of 2018 as Gensol Mobility, Blusmart began as a Uber fleet operator. However, the beginning appeared as a comprehensive Uber rival after began his independent operations in front of the Covid-19 pandemia.
Blusmart collected $ 25 million in January 2024 to increase its EV loading stations from Switzerland -based impact fund. Later that year, the company was reported to be in talks to raise up to $ 100 million, but that funds never materialized.
Gurugram -based start has raised more than $ 486 million in total funds for Crunchbase. Counts BP Ventures and Mayfield India End among its early investors.
Last year, Blusmart had a fleet of 6,000 EV, including about 180 SUVs ZS from MG Motor and the remaining group consisting of Tata Tigor sedans. The planned start to increase the size of its fleet to 10,000 EV by the end of the year, but failed to target.
Jaggi did not answer which measures are taking specifically for Blusmart.
Gensol Engineering shares dropped more than 83%, the latest trading in 129 rupees shortly before the market closes Tuesday.
