New Delhi: 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.
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