Gensol, BluSmart now under a third simultaneous investigation as ED probes for money laundering

After SEBI and the Ministry of Corporate Affairs, ED Launches Probe into Gensol and BluSmart Over Suspected Money Laundering Activities.

Expert Analysis :

• MCA Suo Motu Probe: On April 22, MCA initiated a suo motu inquiry into alleged malpractices at Gensol Electric, amid an ongoing ED money laundering probe.

• Sebi Interim Order: Sebi issued an interim order against Gensol Engineering and promoters Anmol Singh Jaggi and Puneet Singh Jaggi over alleged fund diversion.

• ED and MCA Investigations: ED joins Sebi and MCA probes, examining potential money laundering at Gensol Engineering and BluSmart.

• Gensol Loan Details: Gensol secured Rs 978 crore in term loans (2021–2024), including Rs 664 crore for 6,400 EVs to be leased to BluSmart, with an additional 20% equity contribution, totaling Rs 830 crore for EV purchases.

• EV Procurement Discrepancy: Gensol procured 4,704 EVs for Rs 568 crore, leaving a Rs 262.13 crore discrepancy from the expected Rs 830 crore deployment, noted by Sebi.

• Pre-order Clarification: Gensol announced pre-orders for 30,000 EVs in January 2025, but Sebi clarified that the 29,000-unit MoUs lacked binding terms, pricing, and delivery schedules.

• ED Action and Gensol Shares Drop: On April 21, ED attached Gensol shares linked to a Mahadev betting case; Gensol’s stock fell 5% on April 22 and is down 86% in 2025.