Earlier this week, there were reports that BluSmart might be shutting down its main cab service.
Electric cab service BluSmart has temporarily suspended its operations in Delhi NCR, Mumbai, and Bengaluru. Although the app is available on the Play Store, it doesn't allow users to book or schedule rides until May 7.
This comes after the Securities and Exchange Board of India (SEBI) found potential violations related to funding and compliance. BluSmart, co-founded by Anmol Singh Jaggi and Puneet Singh Jaggi - the promoters of Gensol Engineering Limited (GEL) - has come under scrutiny after SEBI banned the brothers from accessing the securities market and suspended their company's proposed stock split.
In its interim order, SEBI said, "Funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, Gurugram, in the name of a firm where the MD of Gensol and his brother are designated partners."
The market regulator added, "It was separately noted that Rs 5 crore, which was initially paid as booking advance by Jasminder Kaur, mother of Anmol Singh Jaggi, was also sourced from Gensol."
"Further, it was noted that once DLF returned the advance to Kaur, the funds did not go back to the company but were instead credited to another related party of Gensol."
SEBI claimed that Anmol Singh Jaggi transferred Rs 25.76 crore from Gensol to personal accounts and associated companies, including a transfer to Ashneer Grover's company, Third Unicorn.
The market regulator temporarily disqualified the promoters from holding important managerial or directing positions after the disclosures and prohibited Gensol and related companies from trading on the securities market.
Apart from that, SEBI ordered the appointment of a forensic auditor to review the company's books.
Development Agency (IREDA) and Power Finance Corporation (PFC) provided Gensol Engineering with loans totalling Rs 978 crore between 2021 and 2024. Of this, Rs 664 crore was set aside specifically to purchase 6,400 EVs, which BluSmart planned to lease. In February 2025, the company disclosed in a stock exchange statement that it had only purchased 4,704 EVs to date.
The electric-ride-hailing app was already facing problems in late March when Refex Industries' green mobility division pulled the plug on a deal to buy 2,997 electric vehicles worth Rs 315 crore from Gensol.
Earlier this week, there were reports that BluSmart might be shutting down its main cab service and instead become a fleet partner for Uber. The startup may move around 700-800 electric cars to Uber's platform, according to a report in Business Standard.
