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Key Points

BluSmart, an electric ride-hailing company, has temporarily suspended cab services across Mumbai, Delhi-NCR, and Bengaluru following a serious SEBI investigation. The regulatory body has accused the company's co-founders, Anmol and Puneet Singh Jaggi, of misusing public loans meant for electric vehicle procurement. SEBI's interim order suggests significant financial irregularities, including diverting funds to purchase a luxury apartment in Gurugram. The company is currently facing cash flow issues and has delayed salary payments to employees.

Key Points: BluSmart Cab Services Halted After SEBI Gensol Probe

  • SEBI orders forensic audit of Gensol Engineering
  • Founders accused of diverting public loan funds
  • Cab bookings stopped until May 7
  • Company faces significant financial irregularities
2 min read

BluSmart stops cab bookings till May 7 after SEBI action against Gensol

Electric ride-hailing startup BluSmart suspends operations nationwide following SEBI's serious financial misconduct allegations against founders

"Due to current cash flow constraints, there will be a short delay in processing salaries. - Anmol Singh Jaggi, BluSmart Co-founder"

New Delhi, April 16

Electric ride-hailing company BluSmart has temporarily stopped offering cab services in all three of its operating cities -- Mumbai, Delhi-NCR, and Bengaluru.

Customers using the BluSmart app are unable to book rides, with no time slots available until May 7.

This disruption comes just days after India's market regulator Securities and Exchange Board of India (SEBI) passed an interim order against Gensol Engineering Limited and its promoters Anmol Singh Jaggi and Puneet Singh Jaggi.

The two brothers, who co-founded BluSmart, have been accused of diverting loans meant for electric vehicle (EV) procurement to buy a luxury flat in Gurugram's DLF Camellias.

The SEBI's order banned the Jaggi brothers from accessing the securities market and halted Gensol's proposed stock split.

The regulator also directed the appointment of a forensic auditor to examine the company's financial records in detail.

According to the SEBI, Gensol had borrowed Rs 978 crore from public lenders like the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC) between 2021 and 2024.

Out of this, Rs 664 crore was meant for buying 6,400 EVs to be leased to BluSmart. However, only 4,704 vehicles were actually procured, leaving a gap of over Rs 260 crore.

The SEBI suspects a large part of this money was routed through related entities and used for personal gain.

One key transaction involved Rs 42.94 crore being paid to DLF for an apartment in The Camellias project in Gurugram.

The financial troubles have also impacted BluSmart internally. Reports suggest that the company has delayed salary payments for March.

In an email to employees, Anmol Singh Jaggi said there were cash flow issues but promised to clear all dues by the end of April.

"Due to current cash flow constraints, there will be a short delay in processing salaries. However, we want to assure you that all dues will be cleared within the month of April itself," Jaggi reportedly said in the email.

- IANS

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Reader Comments

R
Rahul K.
This is really disappointing. I rely on BluSmart for my daily commute. Hope they sort this out soon. Their service was so much better than regular cabs 😕
P
Priya M.
If the allegations are true, this is a serious breach of trust. EV startups need to be more transparent with investor and public money. The whole sector suffers when things like this happen.
A
Amit S.
Just when EV adoption was picking up pace! I hope this doesn't discourage people from using electric cabs. The drivers shouldn't suffer because of management issues.
S
Sunita R.
Used BluSmart last week - clean cars and polite drivers. Sad to hear about the financial mess. Hope they recover because we need more sustainable transport options! 🌱
V
Vikram J.
While I appreciate BluSmart's service, this situation shows why we need stronger financial oversight for startups. Too much money is being misused in the name of innovation.
N
Neha P.
The employees not getting salaries on time is the worst part. Hope SEBI's investigation brings clarity and the company can get back on track. Their drivers were always so professional.

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