Electric cab welding platform Blusmart remained non-operating on Thursday in Delhi NCR, Bangalore and Mumbai as market regulators undermined its co-founder for alleged abuse of funds at affiliates. BlusmartApp, Blusmart App, the app offers over 8,000 taxis in three subways, so over 8,000 taxis are available on Wednesday night and Wednesday bookings. The sudden pause puts the livelihoods of thousands of drivers at risk and leads customers to frustrate on social media.
The company is backed by BP Ventures, a division of global energy giant BP, and did not immediately comment on the issue. “We decided to temporarily close bookings for the Blusmart app,” the company said in an email to customers.
Earlier this week, Sebi (SEC) banned the Anmol brothers and Puneet Jaggi stock markets and ordered a forensic investigation into its listed renewable energy company Gensol. The focus of the investigation is accusing them of using funds designed to buy electric cars to buy luxury apartments.
“I have a balance of nearly 20K in Blusmart and received an email that the service of Blusmart was suspended this morning. What is this? When will Blusmart be refunded?”
Blusmart guarantees a refund to customers within 90 days in email. “We really appreciate your support. Although we strive to come back as soon as possible, we will initiate a refund within 90 days if the service does not resume before this.” Another client wrote on X: “I love Blusmart. In addition to the money in my wallet, I care more about driver partners, who will lose their jobs until Legendary Battle…”
Meanwhile, Delhi Airport released a passenger consultation on Tuesday night, noting that “Blusmart has temporarily suspended its operations at Delhi Airport”. In addition to providing services in three Indian cities, Blusmart also offers premium all-electric luxury sedan services in the UAE, which was launched last June.
The company, which has a fleet of more than 8,500 electric vehicles as of January 9, has a charging network of 5800 radio stations in 50 hubs in Delhi NCR and Bengaluru, and is supported by more than 10,000 active driver partners. SEBI banned Gensol Engineering and promoters Anmol Singh Jaggi and Puneet Singh Jaggi on Tuesday – standing out from the securities market until further orders for fund transfers and governance failed.
The regulator also set Anmol and Puneet Singh Jaggi apart from their positions as director or principal executives at Gensol until further orders. In addition, market regulators directed Gensol Engineering Ltd (Gel) to hold the IT-announced share split. The order was a complaint received by the Securities and Exchange Commission of India (SEBI) in June 2024, involving the transfer of share price manipulation and transfer of funds from Gel, and the matter began to be reviewed thereafter.
According to SEBI’s orders, Gensol Engineering received a total of Rs 97,777.5 crore in loans from IREDA and PFC, of which Rs 6,638.9 crore was dedicated to the purchase of 6,400 electric vehicles (EVS). The electric vehicle was purchased by the company and then leased to the affiliate Blusmart.
However, in a response submitted to SEBI in February, Gensol admitted that it has purchased only 4,704 electric vehicles to date, with less than 6,400 funding. This was confirmed by EV supplier Go-Auto Private Limited, which confirmed the supply of 4,704 units to the company, totaling Rs 56,777.3 crore. Given that Gensol also needs to provide an additional 20% equity contribution, the total expected spending for electric vehicles is approximately Rs 829.86 crore. Through this calculation, the basis for Rs 262.13 crore is still not available.
