India market regulator introduced a probe to Gensol Engineering on Tuesday after finding the alleged improper use of loans for electric vehicles. Blusmart, starting on a ride related to Gensol, which was once perceived as a rising Uber rival on the South Asia market, was also inhabited to research.
The Council of Securities and Exchange of India (SEBI) banned the founders of Gensol Engineering, Anmol Singh Jaggi and Puneet Singh Jaggi, from having key positions in the company on the public exchange and participating on the securities market, while the agency is investigating. Jaggi Brothers was also a co -founder of Blusmart Mobility.
Anmol Singh Jaggi told Techcrunch that the company “fully cooperates” with the Indian regulator and “submits all necessary documents and facts to clarify.”
“This is just a step, not a final decision and I am sure that when everything is properly reviewed, our position will be clear. We have always believed in doing responsible things, and this will not change,” said Jaggi.
In a temporary order, the regulator accused Jagga’s brothers of redirecting significant loan amounts for personal use, including buying luxury real estate on the outskirts of the capital of India.
The regulator said that Gensol engineering benefited from a 9.78 billion of Indian rupees (about $ 114 million) from the National Indian Renewable Energy Development Agency and Power Finance Corporation. From this 6.63 billion rupees were set for the purchase of 6400 EV to rent Blusmart. However, the company purchased only 4,704 EV for 5.68 billion rupees, the regulator recorded in its order (PDF).
“Some of these funds were then used for purposes not related to the goal/goal of sanctioned timely loans, which included (i) expenses of a personal promoter, including the purchase of high -class real estate; (ii) Private benefits Promoter entities/transfer of funds close to the promoters of promoters; etc.”
Gensol has previously refused to have an alleged failure to pay for debt. However, the regulator cited information from lenders and stated that Headquartered “many cases of failure to perform the obligation are not covered.”
“Promoters ran a listed public company, as if it was a reserved company,” claimed the regulatory authority in the contract.
The order appears greater than a month after lowering gensol, which agencies assessed, increasing the concerns about delays in the field of debt and corporate order.
Meanwhile, Blysmart, a client of Gensol and a unit dividing his co -founders, fights because of growing money burns and lack of external capital. The startup closed his service in Dubai, which was launched last yr, and is currently investigating ways to keep up activities in India, which incorporates Delhi-NCR, Bengalur and Bombay.
A startup with a ride planned to vary the fleet partner for his Uber priest, Indian Economic Gazeta Reported At the starting of this week, citing people familiar with development.
Founded at the end of 2018 as Gensol Mobility, Blusmart began as an Uber fleet operator. However, the startup appeared as an All-EV rival for Uber after starting independent operations before the Covid-19 pandemic.
Blusmart collected $ 25 million in January 2024 to extend his EV charging stations from Swiss liability for the Impact Fund fund. Later the same yr, the company was reportedly conversations collect as much as $ 100 millionBut this funds never materialized.
The startup from Gurugram collected over $ 486 million of total financing, for Crunchbase. It counts Bishop Ventures and Mayfield India Fund among the first investors.
Last yr, Blusmart had a 6000 EV fleet, including about 180 SUVs ZS from the MG engine and the remaining party consisting of Sedans Tad Tigor. Startup planned to extend the size of the fleet to 10,000 EV by the end of the yr, but didn’t achieve the goal.
Jaggi didn’t answer what funds they were taking for Blusmart.
Gensol Engineering shares fell by over 83%this yr, and the last trade at 129 rupees shortly before the market closing on Tuesday.