PSUs Under Scrutiny in BluSmart Funds Misuse Case

The failure of officials at PFC and IREDA in protecting public money from misuse and ensuring the integrity of their lending practices has come into focus.

- ABHINANDAN MISHRA

The Securities and Exchange Board of India (SEBI), in a recently issued interim order against the promoters of Gensol Engineering Limited—a publicly listed company that operates in the renewable energy and cab service provider BluSmart—revealed alarming findings, including unaccounted funds, misappropriation of public money for personal expenses and failure of Government of India undertakings in ensuring that the public money that they gave to the private company was not misused.

As per the investigation by SEBI, which was acting on a complaint that it received last year, Gensol failed to account for approximately Rs 262.13 crores.

This sum, as per SEBI, represents the difference between the funds the company raised to procure 6,400 electric vehicles (EVs) and the actual expenditure for purchasing 4,704 EVs, which amounted to Rs 567.73 crores.

While the remaining vehicles were not purchased, the funds that were raised for it were diverted through layered transactions to entities directly or indirectly connected to Gensol's promoters and directors, Anmol Singh Jaggi and Puneet Singh Jaggi.

A portion of the misused funds was allegedly spent on personal expenses including purchasing a luxury flat worth Rs 42.94 crores in "The Camellias" project by DLF Limited, located in Gurgaon, showcasing how new age entrepreneurs are using public money to get "rich".

Additionally, transactions were carried out for other personal expenses such as foreign currency purchases, credit card payments and purchasing golf equipment.

These funds were routed through Capbridge Ventures LLP, where the Jaggi brothers hold key positions.