BluSmart Begins Shutting Operations, Might Develop into Uber’s Fleet Accomplice: Report
New Delhi:
BluSmart, the fast-rising cab firm with an all-electric fleet, has began suspending its operations, leaving 1000’s of customers in cities like Delhi, Bengaluru and Mumbai, in a flap. The service abruptly stopped working following a Securities and Change Board of India (SEBI) order towards its promoters in a mortgage fraud case.
BluSmart could exit its core enterprise and performance as a fleet associate for its rival Uber, the Financial Occasions reported in the present day. The newspaper cited sources as saying that BluSmart’s shareholders authorized a plan to start the transit of its fleet to Uber over the following few weeks.
BluSmart stopped journey bookings after its co-founder Anmol Singh Jaggi and his brother Puneet Singh Jaggi, the promoters of Gensol Engineering, resigned following the SEBI ban for alleged misappropriation of funds in Gensol.
Per the Securities and Change Board of India (SEBI) order towards Gensol, the Jaggi brothers handled the corporate like a “piggy financial institution”.
What’s BluSmart?
In 2007, the Jaggi brothers based Gensol Engineering as an engineering, procurement and building firm.
In 2018, Jaggi got here along with Punit Goyal to start out BluSmart, an electrical vehicle-only cab aggregator that was then known as Gensol Mobility Pvt. It was rebranded as BluSmart a 12 months later, whereas Gensol diversified into the EV leasing enterprise.
Through the years, BluSmart turned a powerful challenger to rival ride-hailing apps, providing sustainable transportation and immediate service. As of January 9, it had a fleet of over 8,500 electrical automobiles and a charging community of 5,800 stations throughout 50 hubs in Delhi NCR and Bengaluru, and was supported by over 10,000 energetic driver companions.
Positioning itself as India’s first and largest zero emission ride-hailing service, BluSmart operated over 1.45 crore rides, in keeping with the corporate web site.
In June final 12 months, BluSmart launched a premium all-electric limousine service within the UAE.
Gensol Hyperlink Behind Halted BluSmart Companies
The important thing hyperlinks are the Jaggi brothers, co-founders of Gensol Engineering Restricted (GEL).
Shortly earlier than the disruption in BluSmart providers yesterday, the SEBI had handed an interim order towards Gensol Engineering Restricted and its promoters Anmol Singh Jaggi and Puneet Singh Jaggi pertaining to a fund diversion and governance lapses case.
The order got here after the markets regulator obtained a grievance in June 2024 referring to the manipulation of share costs and diversion of funds.
In line with the SEBI, Gensol had borrowed Rs 978 crore from public lenders – Indian Renewable Power Growth Company (IREDA) and the Energy Finance Company (PFC) between 2021 and 2024. Out of this, Rs 664 crore was meant for purchasing 6,400 EVs to be leased to BluSmart. Nevertheless, solely 4,704 automobiles had been procured.
On condition that Gensol was additionally required to offer an extra 20 per cent fairness contribution, the overall anticipated outlay for the EVs was round Rs 829.86 crore. By that calculation, Rs 262.13 crore stays unaccounted for.
The SEBI suspects a big a part of this cash was routed via associated entities and used for private achieve. One key transaction concerned Rs 42.94 crore being paid to DLF for an condominium in high-end Camellias challenge in DLF Gurugram. Different heft spending included a Rs 26 lakh luxurious golf set, private journey and leisure, paying off bank cards, and transferring cash to shut family.
The monetary path continues with Rs 6.20 crore allegedly diverted to Anmol’s mom, Jasminder Kaur, whereas his spouse, Mugdha Kaur Jaggi, obtained Rs 2.98 crore. Puneet diverted Rs 1.13 crore to his partner Shalmali Kaur Jaggi, Rs 87.52 lakh to his mom. Sebi famous that the promoters had been operating the corporate like their private piggy financial institution, with out regard for shareholder curiosity.
In March 2025, credit standing businesses ICRA Ltd. and CARE Rankings Ltd. downgraded Gensol’s credit standing to junk because of delays in debt servicing.
What Comes Subsequent?
The Jaggi brothers have been banned from accessing the securities market and Gensol’s proposed inventory break up has been halted. The regulator additionally directed the appointment of a forensic auditor to look at the corporate’s monetary data intimately. Additional, the Jaggi brothers can’t maintain directorial or key managerial positions in Gensol.
Inner Points
Studies counsel that BluSmart has delayed wage funds for March, IANS reported. In an e-mail to workers, Anmol Singh Jaggi mentioned there have been money circulation points however promised to clear all dues by the tip of April. “Because of present money circulation constraints, there shall be a brief delay in processing salaries. Nevertheless, we need to guarantee you that every one dues shall be cleared inside April itself,” Jaggi reportedly mentioned within the e-mail.
Gensol unbiased director Arun Menon resigned with instant impact, citing restrictions from his current employer in addition to “including restricted worth to the corporate” as causes.
“I wish to take you again to final 12 months, July/August of 2024, once I had tried reaching you to hunt readability on the debt place of the corporate, and had additionally supplied help to scale back the curiosity value via a debt restructure route. Whilst you had messaged me that you’d name again, it by no means progressed,” he mentioned within the letter to Anmol Singh Jaggi.
