By Anjani Kumar
17 April, New Delhi: In a major setback to India’s electric mobility push, Gurgaon-based electric ride-hailing startup BluSmart has suspended its services across Delhi-NCR and Bengaluru following a probe by the Securities and Exchange Board of India (SEBI). The company, once seen as a clean-energy rival to Uber and Ola, now finds itself at the center of one of the biggest alleged financial frauds in the Indian startup ecosystem.
The suspension comes on the heels of explosive findings by SEBI, which has accused BluSmart’s co-founder Anmol Singh Jaggi of diverting over Rs. 25.76 crore from Gensol Engineering Ltd. (GEL)—a company closely affiliated with BluSmart—to fund personal expenses, including luxury property purchases and transfers to entities linked to family members.
Luxury Lifestyles Amid Mounting Losses
Among the lavish acquisitions listed by SEBI is a Rs. 43 crore apartment at The Camellias—an ultra-exclusive luxury complex in Gurugram overlooking a golf course. The Jaggi brothers, Anmol and Puneet Singh Jaggi, reportedly own multiple high-end properties in the area. Other expenses included a Rs. 26 lakh US-made TaylorMade golf set and transfers exceeding Rs. 11 crore to the mother and spouses of the co-founders.
Meanwhile, a deserted EV manufacturing facility—once touted as the backbone of BluSmart’s growth strategy—stands idle hundreds of kilometers away.
App Still Live, But Services Paused
While the BluSmart app remains available on app stores, users are currently unable to schedule rides, suggesting a temporary halt in operations. The company has not issued an official statement regarding the suspension, fueling speculation over whether this pause may lead to a complete shutdown or restructuring.
SEBI Crackdown and Alleged Diversions
SEBI’s investigation revealed that more than Rs. 200 crore sanctioned for EV procurement by Gensol Engineering was allegedly misappropriated. The regulator claims that funds were funneled into personal accounts and shell companies, including a transfer to ‘Third Unicorn,‘ a startup founded by Ashneer Grover.
As a result, SEBI has barred Gensol and associated entities from trading in the securities market and disqualified the promoters from holding key managerial positions on an interim basis.
BluSmart’s Future in Question
Recent reports suggest that BluSmart may be transitioning from a ride-hailing operator to a fleet partner for Uber, with plans to transfer 700–800 EVs to the Uber platform. Uber, which launched its EV service ‘Uber Green’ in 2023, is aiming to deploy 25,000 electric vehicles through partners including Everest Fleet, Lithium Urban Technologies, and Moove.
No official timeline for the BluSmart-Uber integration has been announced, further adding to the uncertainty.
Leadership Exodus and Driver Impact
BluSmart’s troubles have been compounded by a wave of senior management resignations. Last month, CEO Anirudh Arun, Chief Business Officer Tushar Garg, and Chief Technology Officer Rishabh Sood all stepped down, indicating growing instability within the company.
With over 8,000 electric cabs in its fleet, BluSmart’s sudden halt in operations has left thousands of drivers in limbo and customers concerned over pending refunds and wallet balances. Delhi Airport authorities have also officially suspended BluSmart services on their premises.
A Blow to India’s EV Ambitions
Once hailed as a flagship startup of India’s clean energy transition, BluSmart’s downfall could cast a long shadow over the country’s electric mobility landscape. The SEBI probe and potential criminal proceedings against the Jaggi brothers could further erode investor confidence in the Indian startup ecosystem.
As investigations unfold, the industry watches closely to see whether BluSmart can recover from this reputational crisis—or become a cautionary tale for others chasing the green mobility dream.
