Amid suspension of operations, ride-hailing platform BluSmart promises to return wallet money in 90 days

BluSmart is yet to respond to the suspension of services in its core areas. Users report that while the BluSmart app remains live on the Play Store, it does not allow scheduling or booking rides, effectively freezing services.

In Delhi, BluSmart services have been unavailable at key locations like Indira Gandhi International Airport, prompting the airport to issue advisories about the suspension. In Bengaluru, similar issues have been reported, with users unable to book rides or select travel dates.

Reports indicate operational neglect, with BluSmart drivers being asked to operate vehicles with worn tyres, no spare wheels, and poor maintenance. Some vehicles have been abandoned at parking hubs owing to safety concerns, and drivers have faced delayed salary payments, further hampering operations.

The sources told indianexpress.com that the app has been pushing out notifications about returning the wallet money to its users.

A controversy erupted when the Securities and Exchange Board of India (Sebi) launched an investigation into Gensol following allegations of misuse of loan funds, stock manipulation, and falsified financial documents, which also implicated BluSmart because of its interdependence with Gensol.

While Gensol’s primary business is solar EPC (engineering, procurement and construction), its electric vehicle leasing arm, which supports BluSmart, has been directly affected. The failure to procure the planned number of electric vehicles and the collapse of a proposed deal to sell 2,997 EVs to Refex Industries’ green mobility unit (worth Rs 315 crore) have strained its financial position and ability to support BluSmart’s fleet.

The core issue revolves around the alleged diversion of Rs 262 crore out of Rs 978 crore in loans sanctioned by state-owned lenders like the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) between 2021 and 2024. These funds were intended for purchasing 6,400 electric vehicles to be leased to BluSmart, but only 4,704 EVs were procured, leaving a significant portion of the funds unaccounted for.

Sebi’s investigation has revealed that the promoters used these funds for personal expenses, related-party transactions, and investments in unrelated entities, violating corporate governance norms and misleading investors, lenders, and regulators.

The Sebi investigation found that Rs 262 crore of loan funds were misused for personal expenses, including Rs 42.94 crore for a luxury apartment in DLF Camellias, Gurgaon, purchased through Capbridge Ventures LLP, a related entity controlled by Anmol Singh Jaggi, one of the promoters of Gensol. It was also revealed that Rs 6.2 crore was transferred to Anmol’s mother Jasminder Kaur and Rs 2.98 crore to his wife Mugdha Kaur Jaggi.

Rs 25.76 crore was allegedly redirected to personal accounts and entities, including a transfer to Third Unicorn, a startup founded by Ashneer Grover. The investigation also revealed other expenses including a Rs 26 lakh golf set, foreign travel, luxury items and credit card payments.

The investigations disclosed that funds were routed through entities like Go-Auto Pvt Ltd (Gensol’s electric vehicles supplier), Wellray Solar Industries, and Gosolar Ventures, creating a web of circular transactions to obscure the trail. Eventually, the diversion left Gensol unable to meet its electric vehicle procurement targets, directly impacting BluSmart’s fleet expansion and operational capacity.