ED detains Gensol's Puneet Singh Jaggi in alleged money laundering case; conducts searches against firm

The Enforcement Directorate (ED) has detained Puneet Singh Jaggi, co-promoter and director of Gensol Engineering Ltd, in connection with a money laundering probe linked to an alleged bank fraud case. The agency also carried out search operations at the company’s premises, including its headquarters in Ahmedabad.

While the agency has not disclosed further details about the case, Jaggi reportedly was taken in for questioning on April 23, and his formal arrest is likely to follow pending approval from the ED’s senior officials.

The raids were conducted under the provisions of the Foreign Exchange Management Act (FEMA), and were carried out at the company's premises in Delhi, Gurugram and Ahmedabad.

Gensol Engineering, part of the Gensol Group, is involved in providing engineering, procurement, and construction (EPC) services in the renewable energy space, particularly solar. The company also forayed into the electric vehicle (EV) manufacturing segment through its brand BluSmart and its EV arm Gensol EV.

The ED’s action stems from a SEBI order that alleged Gensol Engineering secured loans from Power Finance Corporation and IREDA Ltd for the procurement of electric vehicles and execution of EPC contracts.

However, instead of using the funds for their stated objectives, the company reportedly diverted the money towards acquiring assets registered in the personal names of the promoters, their relatives, or through various shell companies linked to the group.