New Delhi, April 17 – The Indian startup world is once again facing serious scrutiny after a controversial case involving the Jaggi brothers – Anmol Singh Jaggi and Puneet Singh Jaggi – founders associated with BluSmart and Gensol Engineering Limited, came to light. The developments have raised widespread questions about ethics, transparency, and accountability in the country’s fast-evolving electric mobility and clean energy sectors.
What’s the Buzz All About?
According to recent reports, India’s market regulator SEBI (Securities and Exchange Board of India) has accused Anmol Singh Jaggi of diverting Rs 25.76 crore from Gensol Engineering Ltd to his personal bank accounts and related entities. What’s more intriguing is that a portion of this amount allegedly found its way to Ashneer Grover’s startup – Third Unicorn.
This revelation has stirred massive public outrage, especially given that Gensol had received massive loans totaling Rs 978 crore between 2021 and 2024 from government-backed institutions IREDA (Indian Renewable Energy Development Agency) and PFC (Power Finance Corporation). Out of this, Rs 664 crore was specifically sanctioned to purchase 6,400 electric vehicles that were supposed to be leased to BluSmart – an electric cab service promoted by the Jaggi brothers.
However, a disclosure in February 2025 shocked stakeholders – Gensol reported that only 4,704 EVs had been procured so far, raising concerns about the remaining funds and their usage.
Money Trail Raises Red Flags
SEBI’s findings hint at a systemic misuse of public and institutional funds, casting a shadow over what many saw as a clean energy success story. The fact that money intended for promoting electric mobility might have been siphoned off for personal gain or private investments has struck a nerve with both the public and financial experts.
This is not merely a case of financial mismanagement; it’s now shaping up to be a symbol of how trust in India’s startup ecosystem is being eroded by a few rogue players.
Social Media Reacts: “Be Smart, Be BluSmart?”
As the news spread, X (formerly Twitter) exploded with reactions. One user posted,
“I’ve realized in India, it’s not enough to be smart to make money. You also need to be BluSmart.”
Another added,
“The saddest part of the Gensol-BluSmart fiasco is that honest founders with real intent will now bear the burden of this fraud.”
The sentiment is clear – people are fed up with founders chasing valuation over values, often misusing public trust and funding in the process.
Questions That Demand Answers
- Where did the missing funds go?
- Why were over 1,600 EVs never procured despite sanctioned loans?
- What role did connected parties like Third Unicorn play in this?
- Is SEBI considering further action, including freezing of assets or legal proceedings?
These are questions regulators and auditors must answer soon, especially with growing calls for stringent checks on fund utilization by startups using public or institutional money.
What This Means for the Startup Ecosystem
The BluSmart-Gensol saga is more than just another financial scandal – it reflects a crisis of credibility. With India positioning itself as a global hub for EVs, renewables, and sustainable business, such incidents risk damaging investor confidence and public support.
Many now argue that corporate governance norms need urgent reforms, particularly in venture-backed startups that benefit from government schemes or loans. Experts are calling for real-time audits, transparent disclosures, and founder accountability as mandatory frameworks going forward.
Whether or not the Jaggi brothers are ultimately held accountable in court, the public perception is already damning. And in the age of social media, where outrage can quickly become a movement, it’s clear that India’s startup culture needs a serious moral check.
The case continues to unfold, and all eyes are now on SEBI, government finance agencies, and the legal system to set an example – not just for punishment, but for the future of Indian entrepreneurship.
Let me know if you’d like a visual banner suggestion or a summary for LinkedIn or other platforms.
