Amid fraud by Gensol promoter Anmol Singh Jaggi, Blusmart began closing taxi operations in these cities
Gensol project sponsor Anmol Singh Jaggi’s electric taxi operation company Blusmart has begun suspending operations in Delhi’s NCR, Mumbai and Bengaluru cities, covering the news portal Economic times Thursday, April 17.
According to the report, users who attempt to book their EV rides cannot do so based on the report from Delhi Airport and some other areas in Delhi and Gurugram.
“Please note that Blusmart has temporarily suspended its operations at Delhi Airport. However, there are enough taxi and taxi services…” Delhi International Airport said in a passenger consultation, citing the news portal.
The report also mentioned that taxi operators are losing more than ₹200 million a month and close its business after a failed attempt to raise new capital.
This development happened in Blusmart and Gensol engineering sponsor Anmol Singh Jaggi, who faced allegations of securities fraud and forgery from the Securities and Exchange Commission of India (SEBI).
“The sponsor is running a listed company that appears to be a proprietary company. The company’s funds are routed to affiliates and used for unconnected expenses, as if the company’s funds are from the sponsor’s PiggyBank.”
Market regulators have prohibited brothers involved in fraud from holding any position or securities transactions in Gensol until further notice. They also proposed a 1:10 stock allocation for the company after Sebi appointed a forensic auditor to browse any further violations in its books.
Blusmart exits taxi service
The news portal also reported in early April that Blusmart wanted to withdraw from its core business and operate in a fleet partner that became a rival Uber. The company’s move comes from the company six years after entering the Indian mobility market.
The Economic Times reported that Blues shareholders approved a plan to start the shipping phase from its platform to Uber in the next few weeks.
The report said the shutdown of operations will begin with 700 to 800 vehicles.
According to earlier reports, the company’s daily riding volume has dropped to half of Blusmart’s 25,000-30,000 rides at its 2023 operating peak.
According to an early MINT report, all-electric taxi sales companies also complained about the limited availability of electric vehicle models in India and how retail purchasing sectors have become stronger, putting pressure on the taxi buying sector of Indian automakers selling these vehicles.
(Livemint cannot independently verify the report.)
