ED Detains BluSmart Cofounder Puneet Jaggi

The Enforcement Directorate reportedly detained BluSmart cofounder Puneet Singh Jaggi from a hotel in New Delhi today.

As per news agency PTI, Jaggi was detained on the same day on which the ED conducted raids at multiple premises linked to his company Gensol Engineering. As per the report, the searches were carried out at the company’s premises in Delhi, Gurugram and Ahmedabad under the provisions of the Foreign Exchange Management Act (FEMA).

While Jaggi was detained by the ED from a Delhi hotel, sources told the news agency that his sibling and another BluSmart cofounder Anmol Jaggi is currently in Dubai.

The development comes days after SEBI, in an interim order, said that the brothers misutilised Gensol’s funds in a fraudulent manner and treated the capital as their “piggybank”. The report also noted that the duo used the company’s funds .

The ED crackdown was based on the SEBI order, , obtained from Power Finance Corporation and Indian Renewable Energy Development Agency (IREDA) for the purpose of procuring EVs for BluSmart and EPC contracts, for “purchasing the assets in personal name of promoters or their relatives or in various shell entities floated by the group”.

Inc42 has reached out to Gensol for comments on the development. The story will be updated on receiving a response.

The Mahadev App Scam Connection?

Notably, the development comes just a day after reports surfaced that the ED was preparing to question Jaggi brothers in connection with its ongoing probe into the INR 20,000 Cr Mahadev Book betting app scam.

As per a report, the directorate recently froze over 5 Lakh shares of Gensol Engineering over suspicions that Dubai-based Zenith Multi Trading DMCC manipulated the prices of the Gensol stock.

“The probe has revealed stock manipulation using tainted funds in the Mahadev app case, which were received in Gensol Engineering through the FPI (foreign portfolio investor) routes. The probe will ascertain whether the promoters were aware of this fact,” an unnamed senior government official reportedly said.

Meanwhile, following SEBI’s order, BluSmart has suspended its operations. While Eversource Capital was said to be in talks to acquire the startup, it was reported a day ago that to carry out a forensic audit of its books.

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