Gensol Engineering Limited Executive Resignations

Gensol Engineering Limited has reported significant changes in its leadership as two of its senior executives, Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi, have resigned from their posts, effective from the end of business on May 12, 2025.

Reasons for Resignation

In individual letters addressed to the Board of Directors, both Anmol Jaggi and Puneet Jaggi indicated their resignations are a result of compliance with the directions outlined in the Securities and Exchange Board of India (SEBI) Interim Order dated April 15, 2025. Their resignations also entail a withdrawal from all committee memberships within the company.

Immediate Impact on Gensol Engineering

Following these notable departures, Gensol Engineering has not yet disclosed any potential successors or strategies for board reorganisation. This development comes mere days after SEBI mandated a forensic audit of Gensol Engineering’s financial records for the fiscal years FY22 to FY25.

SEBI Investigation Findings

The market regulatory body has shared its findings from the investigation into Gensol Engineering, which partners with BluSmart and operates as an EV lessor. Findings suggest misuse of funds, leading to a ban on Anmol and Puneet Singh Jaggi from accessing the securities market or holding crucial roles in Gensol Engineering.

Allegations of Fund Misuse

According to the SEBI interim order, the Jaggi brothers took hundreds of crores in company funds intended for purchasing electric vehicles for their affiliate BluSmart. These funds were allegedly diverted for personal and related-party benefits, which included acquiring a luxury apartment in Gurgaon, purchasing golf accessories, foreign currency, and travel expenses.

Consequences on BluSmart

In light of the turmoil at Gensol, BluSmart has halted services in major metropolitan areas like Bengaluru, Mumbai, and Delhi. The company, supported by BP Ventures and Mayfield, is also facing protests from its driver partners regarding unpaid wages and job losses.

Potential Acquisition Talks

Reports indicate that Uber has engaged in discussions to acquire BluSmart’s fleet. Additionally, Evera Cabs (Prakriti Mobility) initiated the repossession of 500 electric cabs previously operated by BluSmart.

Future Operations of BluSmart

The struggling cab operator is said to be negotiating with two significant distressed asset funds focusing on climate and mobility sectors to rejuvenate its operations. However, the current adverse circumstances paint a bleak outlook for the company’s recovery efforts.