India’s electric cab-hailing platform BluSmart has unexpectedly halted its operations in key cities such as Delhi, Bengaluru, and Mumbai. The abrupt disruption comes following a Securities and Exchange Board of India (SEBI) ban on the firm’s promoters Anmol Singh Jaggi and Puneet Singh Jaggi in the high-profile Gensol Engineering Limited parent firm loan fraud case.
Thousands of BluSmart users were left confused and frustrated as the company abruptly stopped accepting ride bookings. The halt comes as the fallout from the SEBI’s interim order spreads, raising uncertainty about the future of the once-promising green mobility startup.
According to the Economic Times, BluSmart is now exploring an exit from its core ride-hailing business. The publication cited sources claiming that shareholders have approved a proposal to shift its electric fleet to Uber in the coming weeks, effectively transitioning from a direct service provider to a fleet partner.
SEBI’s Fraud Findings: A Piggy Bank for Promoters
SEBI probe found apparent money misappropriation by Jaggi brothers, co-founders of Gensol Engineering. The market regulator added that the promoters used the company as a “piggy bank,” sending funds for business use to individual extravagance and real estate.
Anmol and Puneet Singh Jaggi, BluSmart co-founders, resigned immediately after the SEBI restriction. The resignation prompted the sudden halt in BluSmart services.
The Birth of BluSmart and Gensol
The Jaggi brothers founded Gensol Engineering in 2007 as an EPC engineering, procurement, and construction company. In 2018, Anmol Jaggi partnered with Punit Goyal to start BluSmart — known at the time as Gensol Mobility Pvt — that specialized exclusively in electric vehicle mobility. It was renamed BluSmart in 2019, with Gensol venturing into EV leasing.
BluSmart expanded steadily, standing apart from traditional cab operators with its entirely electric fleet and emphasis on green travel. It had over 8,500 EVs and 5,800 charging points distributed across 50 hubs in Delhi NCR and Bengaluru by early 2025. BluSmart also had over 10,000 active driver partners working for it.
BluSmart positioned itself as India’s biggest zero-emission ride-hailing service, with more than 1.45 crore rides accomplished. It even went global by introducing a luxury electric limo service in the UAE in June 2024.
The Gensol-Governance Crisis
Trouble started when SEBI got a complaint in June 2024 against Gensol for price rigging and misusing loan proceeds. The company led by Jaggi had taken ₹978 crore from public lenders such as the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) between 2021 and 2024. ₹664 crore of this was earmarked for buying 6,400 EVs for BluSmart — but only 4,704 cars were purchased.
SEBI pointed out that Gensol was required to infuse the remaining 20% of the equity, so the total expense would be ₹829.86 crore. Nevertheless, approximately ₹262.13 crore is yet to be explained.
Investigations indicate that these amounts were channelled through connected firms for personal luxury. A single transaction accounted for ₹42.94 crore to DLF as payment for a luxury flat in Gurugram’s Camellias project. Other dubious spending included a ₹26 lakh golf set, costly leisure travel, credit card expenses, and high-value transfers to relatives.
SEBI also discovered that Anmol Singh Jaggi supposedly transferred ₹6.20 crore to his mom Jasminder Kaur and ₹2.98 crore to his wife Mugdha Kaur Jaggi. Puneet Singh Jaggi supposedly transferred ₹1.13 crore to his wife, Shalmali Kaur Jaggi, and ₹87.52 lakh to his mom.
Credit Ratings Downgraded
In March 2025, rating agencies ICRA and CARE downgraded Gensol’s credit rating to junk due to significant delays in debt servicing. This added pressure on the firm’s liquidity and raised concerns among its investors and partners.
The SEBI restriction not only excludes the Jaggi brothers from entry into the securities market but also freezes their positions in Gensol. SEBI has also directed a forensic audit to look into financial mismanagement in-depth. SEBI has also put on hold the proposed stock split by Gensol.
Independent director Arun Menon of Gensol resigned forthwith following the SEBI action. In his resignation letter to Anmol Singh Jaggi, Menon stated, “I would like to recall you to last year, July/August 2024, when I had attempted to contact you to obtain clarity on the company’s debt position and had also proposed a debt restructuring option to lower the cost of interest. Although you had indicated via message that you would call back, it never materialized.”
Employee Agitation and Delay in Salaries
With the deepening of the financial crisis, BluSmart workers are increasingly in the dark. Some have reported delay in their March salaries. In an in-house email, Anmol Singh Jaggi gave the reason for the delay as “cash flow constraints.”
“Owing to existing cash flow constraints, there will be a slight delay in salary processing. But rest assured that all dues will be settled within April itself,” Jaggi said.
What Lies Ahead for BluSmart?
The once-promising green mobility venture is now at a crossroads. Transitioning to a fleet partner for Uber might be the only viable route to stay afloat. However, the damage to its brand, employee morale, and investor confidence could take years to repair.
With SEBI’s inquiry still ongoing and the future of Gensol uncertain, BluSmart’s operations — and its vision for sustainable transport — remain in limbo
