Winning Bizness Desk
Mumbai. The Enforcement Directorate (ED) conducted raids on April 24 at the premises of EV and solar energy firm Jain Solar Engineering Ltd (Jainsol), following an action initiated by the Securities and Exchange Board of India (SEBI). The financial probe agency detained company co-founder Puneet Singh Jaggi from a Delhi hotel during the search operations. His brother and fellow promoter Anmol Jaggi is believed to be in Dubai. The raids were conducted under provisions of the Foreign Exchange Management Act (FEMA) at various offices located in Delhi, Gurugram, and Ahmedabad. The company is accused of misappropriating ₹262 crore out of the ₹978 crore loan taken from government-backed institutions.
SEBI flags corporate governance failure
The case began with SEBI’s investigation into allegations of stock price manipulation and fund diversion by the company’s promoters. SEBI’s probe in June 2024 found that promoters used company funds for personal expenses. Following the findings, SEBI barred both Jaggi brothers from serving as directors and prohibited them from trading in the stock market. The regulator stated that Jainsol's corporate governance had collapsed, with promoters treating the public-listed firm as their private entity. Funds were allegedly routed through related parties and misused for personal luxury, leading to investor losses. The company’s share price has plunged over 87% so far in 2025.
Funds diverted from EV purchases
Jainsol had secured a term loan of ₹977.75 crore from the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), intending to buy 6,400 electric vehicles (EVs) for leasing to ride-hailing platform BluSmart. The plan involved spending ₹830 crore, including a 20% margin of ₹166 crore from the company’s own reserves. However, by February 2025, only 4,704 EVs worth ₹567.73 crore were purchased. There remains an unexplained gap of ₹262.13 crore.
Flow of funds under scrutiny
According to SEBI, every time funds were transferred from Jainsol to its vehicle procurement partner Go-Auto, the money was either returned or routed to entities linked directly or indirectly to the Jaggi brothers. Anmol Singh’s bank statements showed large sums diverted to family members or used for personal indulgences, including luxury real estate, trading, and golf equipment. SEBI accused the company of submitting false “conduct letters” to lenders and credit rating agencies to conceal defaults and misrepresent its loan servicing record.
From solar EPC to EV ambitions
Founded in 2012 by Anmol and Puneet Jaggi, Jainsol initially operated as a solar energy consultancy and EPC (engineering, procurement, and construction) firm. It later expanded into electric vehicle manufacturing and leasing via its subsidiary BluSmart Mobility. The company got listed on NSE’s SME platform in 2019 and moved to NSE and BSE main boards by 2023. Between 2022 and 2024, investor enthusiasm for renewables and EVs pushed its stock up by 2,600%, driven by a ₹7,000 crore order book and rising revenues.
Business model and segments
Jainsol currently operates in three verticals: solar EPC, which contributed 72.3% of revenue during April-December 2024; EV leasing, including partnerships with BluSmart (27.7% revenue share); and EV manufacturing, with a production facility near Pune designed for 12,000 cars annually. Despite rapid growth, concerns around financial integrity and regulatory compliance now threaten the company’s future.
Key Takeaways:
- ED raided Jain Solar’s offices in Delhi, Gurugram, and Ahmedabad under FEMA.
- Co-founder Puneet Jaggi was detained; Anmol Jaggi is reportedly in Dubai.
- The company is accused of misusing ₹262 crore from a ₹978 crore loan.
- SEBI found promoters diverted funds for personal luxury and family use.
- Only 4,704 EVs were purchased against a target of 6,400 under the loan scheme.
- Jainsol submitted false records to lenders and regulators to hide defaults.
- The company operates in solar EPC, EV leasing, and manufacturing segments.
