Lacking Crores, A Luxurious Flat, And EV Cabs

In July 2024 EV cab service BluSmart raised Rs 200 crore in funding from new traders like ex-India cricket staff captain MS Dhoni and Responsability Investments, a personal banking agency from Switzerland. That spherical took whole funding since December 2023 to round Rs 710 crore.

It additionally marked the completion of the Gurugram-based firm’s pre-Sequence B spherical, which is about serving to companies – particularly those who have established themselves of their respective markets and have a loyal person base – scale as much as the subsequent stage of operation.

Then, in January 2025, BluSmart mentioned it was elevating one other Rs 5 crore, and that its pre-money valuation – i.e., its price earlier than it receives new exterior funding – was round Rs 33.5 crore.

All, it appeared, was going properly for the brand new child on the ride-hailing block and for its promoters, brothers Anmol and Puneet Singh Jaggi, who have been additionally behind Gensol Engineering Restricted.

BluSmart, it appeared, was residing as much as expectations – that it’s going to revolutionise India’s fledging ride-hailing business. However then got here February 2025, and cracks began to look.

In February the corporate reportedly defaulted on a Rs 30 crore fee. There have been additionally studies that in December the corporate had intentionally misled credit standing companies.

In March the promoters blamed “money circulation constraints” for delayed salaries.

By this time there have been studies of traders backing out.

And on April 15, 2025, the Securities and Change Board of India, or Sebi, started asking questions – about BluSmart, Gensol, and the brothers’ obvious diversion of Rs 262 crore in loans meant to purchase 1,700 EVs, or electrical automobiles, in direction of the acquisition of ultra-luxurious items, together with an house in Gurugram’s unique DLF Camelias residential venture.

Throughout the subsequent 48 hours the cracks widened; BluSmart suspended operations throughout Delhi, Bengaluru, and Mumbai, and studies emerged of rivals Uber circling to choose up its EVs.

So, what has occurred to Anmol and Puneet Singh Jaggi, and to BluSmart?

Sebi’s Allegations

Sebi has alleged governance points, diversion of funds, and submission of falsified paperwork.

In essence, Sebi has mentioned funds raised by Gensol to buy EVs for BluSmart had, by way of “layered transactions”, been partially used for private enrichment.

The pink flags embody diverting Rs 43 crore to purchase the DLF Camelias house, spending Rs 26 lakh on golf golf equipment imported from america, and foreign exchange violations of Rs 1.86 crore.

It was additionally claimed that after a Rs 5 crore deposit for the house was returned by DLF, the cash had been transferred to an outdoor get together and never Gensol, because it ought to have been.

Consequently, the regulator has launched an investigation and barred the brothers from accessing the securities market and holding high-level managerial roles at Gensol.

The ‘Rip-off’ Background

Gensol reportedly secured Rs 978 crore from public sector lenders, together with the Indian Renewable Power Improvement Company and the Energy Finance Company, from 2021 to 2024. Of this quantity, Rs 664 crore was supposed fund the acquisition of 6,400 EVs.

These EVs have been to be leased to BluSmart (extra on this enterprise mannequin later) and included into what was touted as an increasing fleet to service Delhi-NCR, Bengaluru, and Mumbai.

However a regulatory submitting in February 2025 opened a can of worms; Gensol revealed that solely 4,704 EVs had been bought, and that solely Rs 568 crore had been utilised.

The place, then, was the remaining Rs 96 crore? And what turned of the remainder of the funds secured from public lenders, which amounted to Rs 262 crore.

Impression On BluSmart?

The greater than 8,500 BluSmart-branded EVs which were working, until now, on roads in Delhi-NCR, Bengaluru, and Mumbai are, in truth, owned by Gensol, which is listed as an Ahmedabad-based renewable power agency that was based by the Jaggi brothers in 2007.

The EVs bought by Gensol have been then leased out to BluSmart, which operated the ride-hailing enterprise and paid again Gensol, and its drivers and staff.

And the corporate gave the impression to be making a living; in March 2025 BluSmart mentioned it anticipated to show a revenue inside the subsequent six quarters. Gross income for October-December quarter in 2024 was Rs 176 crore, it mentioned, and for 10 months it had elevated by 72 per cent to Rs 514 crore.

However as soon as the Sebi order broke, BluSmart went offline.

Prospects have been not in a position to e book cabs, and there may be an added concern for them.

What is going to occur to cash loaded into pre-paid BluSmart digital wallets?

The way forward for the BluSmart is now in query, significantly since senior executives have reportedly stop and the corporate might pivot to being a fleet associate for rival Uber.