BluSmart, the fast-growing electric cab service, has abruptly suspended its operations in major Indian cities including Delhi, Bengaluru, and Mumbai. This sudden halt in services has left thousands of commuters stranded and confused. The disruption follows a Securities and Exchange Board of India (SEBI) order against the company’s promoters, who have been accused of financial misconduct.
According to reports, BluSmart may soon exit its core ride-hailing business and instead operate as a fleet partner for Uber. As per The Economic Times, shareholders have approved a plan to begin transferring BluSmart’s fleet to Uber over the next few weeks, signaling a significant pivot in the company’s operations.
The crisis unfolded after SEBI issued an interim order against Anmol Singh Jaggi and Puneet Singh Jaggi—the co-founders of Gensol Engineering, a company closely linked to BluSmart. Both brothers have resigned from their roles after the market regulator accused them of misappropriating funds and treating Gensol like a “piggy bank”.
BluSmart, launched in 2018 as Gensol Mobility Pvt. and later rebranded, was founded by Anmol Jaggi along with Punit Goyal. The company quickly rose to prominence as India’s first and largest all-electric, zero-emission ride-hailing service. As of January 2025, it boasted a fleet of over 8,500 electric vehicles, a network of 5,800 charging stations across 50 hubs in Delhi NCR and Bengaluru, and a base of over 10,000 driver partners. It had completed over 1.45 crore rides and had recently ventured into international markets by launching a premium EV limousine service in the UAE.
The root of BluSmart’s operational shutdown lies in its financial ties with Gensol Engineering Limited (GEL), also promoted by the Jaggi brothers. SEBI’s investigation revealed that Gensol borrowed ₹978 crore from public financial institutions like the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC) between 2021 and 2024. Of this, ₹664 crore was earmarked for the purchase of 6,400 electric vehicles to be leased to BluSmart. However, only 4,704 EVs were reportedly procured, leaving ₹262.13 crore unaccounted for.
The SEBI probe revealed alarming financial irregularities, including luxury purchases and personal expenditures made using diverted funds. One major transaction involved a payment of ₹42.94 crore for an upscale apartment in the DLF Camellias project in Gurugram. Other questionable expenses included a ₹26 lakh golf set, personal travel and leisure, credit card bill payments, and fund transfers to close relatives.
As BluSmart prepares to reposition itself in the mobility space through a partnership with Uber, the scandal has raised broader concerns about corporate governance and transparency in India’s rapidly growing EV and startup ecosystem.
