Gensol-BluSmart scandal: Loan fraud allegations rattle Indian EV industry
Gensol-BluSmart founders, Anmol and Puneet Jaggi, are embroiled in a financial fraud scandal. A SEBI report reveals misappropriation of funds meant for business development, used for personal gains.
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Gensol-BluSmart scandal
The Gensol-BluSmart scandal has rocked India's startup scene. The Jaggi brothers, once hailed as champions of India's EV revolution, are now embroiled in allegations of financial fraud and misconduct.
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EV orders
SEBI's investigation reveals that the fraud extended beyond personal gain. Gensol's claim of 30,000 EV orders, which boosted their market value, was found to be false. An inspection of their Pune factory revealed minimal production.
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SEBI's response
Gensol submitted forged letters and documents to lending institutions, falsely claiming timely loan repayments. SEBI confirmed these documents were not issued by IREDA and PFC.
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IREDA
Loans intended for company development yielded no growth, with funds misappropriated. IREDA lent Gensol ₹977 crore over three years, ₹664 crore for EV purchases. Only 4,704 vehicles were bought instead of the proposed 6,400.
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