Indian police investigate BluSmart founders over alleged loan diversion

India's Central Bureau of Investigation (CBI) has registered a case against the founders of electric vehicle ride-hailing service BluSmart, Anmol Singh Jaggi and Puneet Singh Jaggi, over alleged diversion and misappropriation of loans amounting to ₹672 crore (approximately $8 million USD) from state-owned Indian Renewable Energy Development Agency (IREDA).

The CBI initiated the probe on July 31, citing charges including criminal conspiracy, cheating, and forgery. The allegations stem from loans extended to Gensol Engineering and its subsidiary Gensol EV Lease, both co-founded by the Jaggi brothers. IREDA's complaint is largely based on forensic audits commissioned by the agency.

According to the audit reports, loan funds were allegedly diverted from their intended purposes. A loan of ₹267.79 crore to Gensol Engineering for purchasing electric vehicles to be leased to BluSmart was reportedly not fully utilized as planned. Furthermore, there are allegations that forged documents were submitted to credit rating agencies to portray a false financial picture.

The forensic audits estimate potential diversion or misuse of funds up to ₹225.89 crore at Gensol Engineering and ₹64.87 crore at Gensol EV Lease. The investigation has uncovered discrepancies in vehicle invoicing, insurance records, and registrations. The probe also examines allegations concerning funds meant for solar energy projects that were allegedly misused.