BluSmart Halts Ride Bookings Until May 7 Following SEBI Action Against Gensol
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Synopsis
On April 16, BluSmart announced the suspension of its cab services in Mumbai, Delhi-NCR, and Bengaluru until May 7, following SEBI's interim order against Gensol Engineering and its founders for financial misconduct.
Key Takeaways
- BluSmart has halted cab bookings until May 7.
- SEBI has acted against Gensol Engineering and its founders.
- Allegations include misusing funds meant for EVs.
- Internal financial issues have led to salary delays for employees.
- A forensic auditor has been appointed for scrutiny.
New Delhi, April 16 (NationPress) The electric ride-hailing service BluSmart has temporarily suspended cab operations across its three main cities: Mumbai, Delhi-NCR, and Bengaluru.
Users of the BluSmart app can no longer book rides, with all time slots unavailable until May 7.
This service interruption follows a recent interim ruling by India's market regulator, the Securities and Exchange Board of India (SEBI), against Gensol Engineering Limited and its founders, Anmol Singh Jaggi and Puneet Singh Jaggi.
The Jaggi brothers, who also established BluSmart, are alleged to have misappropriated loans designated for electric vehicle (EV) acquisitions to finance a luxury apartment in DLF Camellias, located in Gurugram.
As a result of the SEBI's order, the Jaggi siblings have been barred from accessing the securities market, and Gensol’s planned stock split has been put on hold.
Additionally, a forensic auditor has been instructed to scrutinize the company's financial documents thoroughly.
SEBI's investigation revealed that Gensol secured ₹978 crore from public financiers, including the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC), from 2021 to 2024.
Of this amount, ₹664 crore was allocated for the purchase of 6,400 EVs intended for leasing to BluSmart. However, only 4,704 vehicles were actually acquired, resulting in a discrepancy of over ₹260 crore.
SEBI suspects that a significant portion of these funds was diverted through related entities for personal use.
A notable transaction involved ₹42.94 crore paid to DLF for an apartment within the Camellias project.
This financial turmoil has also affected BluSmart internally, with reports indicating that the company has postponed March salary payments.
In a communication to staff, Anmol Singh Jaggi acknowledged the cash flow challenges but assured that all outstanding payments would be settled 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 stated in the email.
