BluSmart, India's electric vehicle ride-hailing startup once seen as a green challenger to Ola and Uber, has been forced to halt operations after a damning interim order by SEBI (Securities and Exchange Board of India) exposed serious financial misconduct by its co-founders—who are also linked to Gensol Engineering Ltd.
The crackdown has left users in Delhi-NCR, Bengaluru, and Mumbai unable to book cabs via the BluSmart app. The company issued an official message, saying bookings were "temporarily closed", and added that if services don't resume within 90 days, users' wallet balances will be refunded.
What Triggered the Shutdown?
SEBI’s April 15 order pointed to a “complete breakdown” of corporate governance at Gensol Engineering, whose promoters—Anmol Singh Jaggi and his brother Puneet Singh Jaggi—also co-founded BluSmart. The regulator barred both from:
-
Accessing the securities market
-
Holding director or senior management positions at Gensol
According to SEBI, the Jaggi brothers misused company funds for personal luxury purchases, including:
-
A Rs 26 lakh golf set
-
A luxury apartment in DLF Camellias, Gurgaon
SEBI called it an egregious case of promoters treating the company like their “personal piggy bank.”
Collateral Damage: BluSmart
BluSmart was already under financial strain, reportedly burning over Rs 20 crore per month to keep operations afloat. Its recent attempt to raise Rs 415 crore ($50 million) failed—largely due to the governance crisis at Gensol, which shook investor confidence.
There had been reports earlier of BluSmart considering shifting its fleet to Uber and exiting the ride-hailing space altogether.
Airports, Users Affected
-
Delhi Airport had to issue an advisory confirming BluSmart's suspension, asking travelers to use other available services.
-
Users across cities reported issues accessing or booking rides on the app.
-
The BluSmart app itself reflected temporary service unavailability in key zones.
Broader Implications
“Startups often operate in a regulatory grey zone. When founders blur the line between personal and corporate finances, the damage can be irreversible. Investor trust is hard to rebuild.”
What Next?
-
SEBI’s full investigation is ongoing.
-
Gensol has promised to cooperate fully, offering complete access to records.
-
BluSmart’s future remains uncertain, with no clear path to revival unless new management steps in or a strategic acquisition occurs.
