New Delhi:
BluSmart, the fast-rising cab company with an all-electric fleet, has started suspending its operations, leaving thousands of users in cities like Delhi, Bengaluru and Mumbai, in a flap. The service abruptly stopped operating following a Securities and Exchange Board of India (SEBI) order against its promoters in a loan fraud case.
BluSmart may exit its core business and function as a fleet partner for its rival Uber, the Economic Times reported today. The newspaper cited sources as saying that BluSmart’s shareholders approved a plan to begin the transit of its fleet to Uber over the next few weeks.
BluSmart stopped ride 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 Exchange Board of India (SEBI) order against Gensol, the Jaggi brothers treated the company like a “piggy bank”.
What is BluSmart?
In 2007, the Jaggi brothers founded Gensol Engineering as an engineering, procurement and construction company.
In 2018, Jaggi came together with Punit Goyal to start BluSmart, an electric vehicle-only cab aggregator that was then called Gensol Mobility Pvt. It was rebranded as BluSmart a year later, while Gensol diversified into the EV leasing business.
Over the years, BluSmart became a strong challenger to rival ride-hailing apps, offering sustainable transportation and prompt service. As of January 9, it had a fleet of over 8,500 electric vehicles and a charging network of 5,800 stations across 50 hubs in Delhi NCR and Bengaluru, and was supported by over 10,000 active driver partners.
Positioning itself as India’s first and largest zero emission ride-hailing service, BluSmart operated over 1.45 crore rides, according to the company website.
In June last year, BluSmart launched a premium all-electric limousine service in the UAE.
Gensol Link Behind Halted BluSmart Services
The key links are the Jaggi brothers, co-founders of Gensol Engineering Limited (GEL).
Shortly before the disruption in BluSmart services yesterday, the SEBI had passed an interim order against Gensol Engineering Limited and its promoters Anmol Singh Jaggi and Puneet Singh Jaggi pertaining to a fund diversion and governance lapses case.
The order came after the markets regulator received a complaint in June 2024 relating to the manipulation of share prices and diversion of funds.
According to the SEBI, Gensol had borrowed Rs 978 crore from public lenders – 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 procured.
Given that Gensol was also required to provide an additional 20 per cent equity contribution, the total expected outlay for the EVs was around Rs 829.86 crore. By that calculation, Rs 262.13 crore remains unaccounted for.
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 high-end Camellias project in DLF Gurugram. Other heft spending included a Rs 26 lakh luxury golf set, personal travel and leisure, paying off credit cards, and transferring money to close relatives.
The financial trail continues with Rs 6.20 crore allegedly diverted to Anmol’s mother, Jasminder Kaur, while his wife, Mugdha Kaur Jaggi, received Rs 2.98 crore. Puneet diverted Rs 1.13 crore to his spouse Shalmali Kaur Jaggi, Rs 87.52 lakh to his mother. Sebi noted that the promoters were running the company like their personal piggy bank, without regard for shareholder interest.
In March 2025, credit rating agencies ICRA Ltd. and CARE Ratings Ltd. downgraded Gensol’s credit rating to junk due to delays in debt servicing.
What Comes Next?
The Jaggi brothers have been banned from accessing the securities market and Gensol’s proposed stock split has been halted. The regulator also directed the appointment of a forensic auditor to examine the company’s financial records in detail. Further, the Jaggi brothers cannot hold directorial or key managerial positions in Gensol.
Internal Issues
Reports suggest that BluSmart has delayed salary payments for March, IANS reported. 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 April itself,” Jaggi reportedly said in the email.
Gensol independent director Arun Menon resigned with immediate effect, citing restrictions from his present employer as well as “adding limited value to the company” as reasons.
“I would like to take you back to last year, July/August of 2024, when I had tried reaching you to seek clarity on the debt position of the company, and had also offered assistance to reduce the interest cost through a debt restructure route. While you had messaged me that you would call back, it never progressed,” he said in the letter to Anmol Singh Jaggi.
