Gensol Engineering Loan Fraud Probe May Be Handed to CBI
New Delhi: The investigation into alleged financial irregularities involving Gensol Engineering Ltd, a clean-energy company promoted by Anmol Singh Jaggi and Puneet Singh Jaggi, is poised to be transferred to the Central Bureau of Investigation (CBI). Officials familiar with the matter said the Ministry of Home Affairs (MHA) is likely to issue a formal notification soon, based on the recommendation of the Delhi Police, which suspects involvement of public servants in the alleged fraud.
The Economic Offences Wing (EOW) of the Delhi Police has been probing the case for over three months following complaints by two government-owned financial institutions—Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency Limited (IREDA). Together, the two public sector bodies had extended loans amounting to approximately ₹977 crore to Gensol between 2022 and 2024.
According to officials, the Delhi Police’s preliminary investigation pointed to the possible role of public servants in the disbursement of these loans, making it a matter that falls under the CBI’s jurisdiction, especially given the anti-corruption angle. “In both complaints, there is sufficient initial evidence suggesting the involvement of government officials in granting loans without adequate due diligence. That’s why the case is being referred to the CBI,” a senior government official said on condition of anonymity.
SEBI Uncovers Serious Misuse of Loan Funds
The Securities and Exchange Board of India (SEBI), which had earlier initiated its own inquiry, published findings on April 15 that further deepened concerns. SEBI’s report revealed that out of the ₹977.75 crore loaned to Gensol, ₹663.89 crore was earmarked specifically for the procurement of 6,400 electric vehicles (EVs). However, the company managed to procure only 4,704 EVs, leaving a significant discrepancy.
Moreover, SEBI stated that the company was also required to contribute an additional 20% equity, pushing the total expected spend for the vehicles to about ₹829.86 crore. This led to the conclusion that nearly ₹262 crore remained unaccounted for. The market regulator discovered that a portion of the loan amount was routed either directly or indirectly to the promoters—Anmol and Puneet Jaggi—and was allegedly used for personal expenditures, including the purchase of a luxury apartment, transfers to relatives, and investments in private entities owned by the duo.
Directors Step Down Amid Mounting Scrutiny
Following SEBI’s revelations, both Anmol and Puneet Jaggi stepped down from their respective roles in May—Anmol as Managing Director and Puneet as Whole-Time Director. In a court filing, Puneet Jaggi distanced himself from the day-to-day operations of the company, stating that his elder brother, Anmol—now based in Dubai—was solely responsible for operational decisions.
ED Probe Under FEMA and Awaiting PMLA Clearance
Adding to the mounting legal pressure, the Enforcement Directorate (ED) is also actively investigating the matter. The agency is currently probing the promoters and the company under the Foreign Exchange Management Act (FEMA) and had conducted raids on April 24. During the raids, ED officials questioned Puneet Jaggi but released him as FEMA does not provide arrest powers.
According to sources, ED is waiting for an FIR to be registered under a predicate offence, which would allow it to expand the probe under the Prevention of Money Laundering Act (PMLA). Meanwhile, the agency has frozen bank accounts belonging to both the company and its promoters.
The ongoing investigations by Delhi Police, SEBI, and ED have now converged around a common concern—the potential misuse of public funds, and the suspected involvement of public officials in sanctioning high-value loans without appropriate checks. With the likely handover of the case to the CBI, a deeper probe into both corporate and bureaucratic culpability appears imminent.
