In a decisive move on April 15, 2025, India's Securities and Exchange Board (SEBI) issued an interim order restricting Anmol Singh Jaggi and Puneet Singh Jaggi, founders of Gensol Engineering, from holding executive positions within the company and participating in the securities market. This action follows allegations of defaulting on loans totaling approximately ₹9.78 billion (around $114 million) obtained from the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). The funds were primarily used to procure electric vehicles for BluSmart, an EV ride-hailing service also owned by the Jaggi brothers.

SEBI's investigation revealed that Gensol's promoters allegedly misused company finances, treating them as personal assets. The regulator highlighted instances where company funds were diverted to related parties and utilized for unrelated expenses, compromising corporate governance standards.

The financial strain on Gensol became evident as credit rating agencies downgraded the company's ratings, citing liquidity concerns and governance issues. Consequently, Gensol's stock has plummeted by approximately 75%, eroding significant shareholder value.

In light of these developments, SEBI has also halted Gensol's proposed 1:10 stock split. Meanwhile, BluSmart is reportedly exploring a strategic shift to operate as a fleet partner for a major ride-hailing competitor, indicating potential changes in its business model.

As the situation unfolds, stakeholders await further clarity on Gensol's corporate governance reforms and the future trajectory of both Gensol and BluSmart in the evolving EV landscape.