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BluSmart suspends operations as SEBI probes co-founder over fund diversion

VCCircle

VCCircle · 4m ago

BluSmart suspends operations as SEBI probes co-founder over fund diversion

BluSmart, an Indian electric cab service competing with Uber, has suspended operations following a probe by SEBI into co-founder Anmol Jaggi for fund diversion. The investigation revealed misuse of funds intended for electric vehicle procurement, allegedly spent on a luxury apartment. BluSmart, which operated over 8,000 taxis with charging hubs in major Indian cities, risks affecting thousands of drivers' livelihoods. The company promises refunds within 90 days if services don’t resume.

Related News

BluSmart files for insolvency amidst mounting corporate governance challenges: Report

YourStory

YourStory · 1m ago

BluSmart files for insolvency amidst mounting corporate governance challenges: Report

BluSmart, an EV ride-hailing company, has filed for insolvency due to corporate governance issues. The move follows a regulatory investigation revealing fund misappropriation by a co-founder. Gensol Engineering, which leased electric vehicles to BluSmart, was accused of fund diversion for personal use. This has led to management resignations and halted operations. The National Company Law Tribunal has appointed an interim resolution professional to oversee BluSmart's operations and assets during insolvency proceedings.

BluSmart pauses services in key cities

Entrackr

Entrackr · 4m ago

BluSmart pauses services in key cities

BluSmart, an electric ride-hailing company, has reportedly paused ride bookings in parts of Delhi-NCR and Bengaluru, following a SEBI investigation into Gensol Engineering, a company linked to BluSmart. This pause suggests a possible transition to becoming a fleet partner for Uber, potentially transferring 700-800 electric vehicles to Uber's platform. Amidst these developments, SEBI has accused BluSmart co-founder Anmol Singh Jaggi of fund diversion from Gensol for personal use, leading to trading restrictions for Gensol and associated entities. The company was in the process of raising $50 million in its Series B round.

Anmol Jaggi pitched strategic changes at BluSmart ahead of Sebi crackdown on Gensol

Economic Times

Economic Times · 4m ago

Anmol Jaggi pitched strategic changes at BluSmart ahead of Sebi crackdown on Gensol

Anmol Singh Jaggi, co-founder of BluSmart, proposed three strategic changes to the EV ride-hailing firm amidst a Sebi crackdown on Gensol Engineering Ltd for financial irregularities. The options included shifting fleet operations to Uber, obtaining interim funding from BP Ventures, and an asset sale to Eversource Capital. These strategies aimed to improve BluSmart's operational efficiency and financial health. Ultimately, BluSmart ceased operations following allegations of fund misappropriation by Jaggi and his brother.

BluSmart cab services stay suspended in Delhi-NCR, Bengaluru, Mumbai as cofounder under Sebi lens

Economic Times

Economic Times · 4m ago

BluSmart cab services stay suspended in Delhi-NCR, Bengaluru, Mumbai as cofounder under Sebi lens

BluSmart cab services in Delhi-NCR, Bengaluru, and Mumbai are suspended due to the co-founder's scrutiny by a market regulator over alleged fund misuse. The sudden halt affects over 8,000 taxis and numerous drivers' livelihoods. Backed by BP Ventures, BluSmart assured customers of refunds within 90 days. The crackdown also involves Gensol Engineering's promoters accused of fund diversion. BluSmart's related party, Gensol, faces allegations of mishandled funds intended for electric vehicle procurement.

BluSmart appoints Grant Thornton for a forensic audit

Economic Times

Economic Times · 4m ago

BluSmart appoints Grant Thornton for a forensic audit

BluSmart has engaged Grant Thornton for a forensic audit following allegations against its co-founder, Anmol Jaggi, of diverting company funds for personal gains. The electric taxi service, a competitor to Uber and Ola, suspended operations after regulatory bans on its co-founder. The audit aims to assess the company's cash position and investigate fund movements. BluSmart's financial stability is uncertain, with concerns over internal controls and fund utilization impacting its operations and related entities.

Gensol-BluSmart Fiasco: NFRA Probes Fund Diversion Allegations After Sebi Referral

OutlookIndia

OutlookIndia · 4m ago

Gensol-BluSmart Fiasco: NFRA Probes Fund Diversion Allegations After Sebi Referral

The National Financial Reporting Authority (NFRA) is investigating allegations of fund diversion by the promoters of Gensol Engineering following a referral from the Securities and Exchange Board of India (SEBI). The investigation focuses on suspected fraudulent activities, including false disclosures and sham transactions that led to a significant reduction in the promoters' stake. SEBI has banned the promoters from trading and holding positions in Gensol, while the Institute of Chartered Accountants of India will review the company's financial statements.

Independent directors exit Gensol after co-founders probed

VCCircle

VCCircle · 4m ago

Independent directors exit Gensol after co-founders probed

Independent directors have resigned from Gensol Engineering following allegations against co-founders Anmol and Puneet Jaggi for fund misuse. The Securities and Exchange Board of India (SEBI) has barred the brothers from the stock market and initiated a forensic audit of Gensol, connected to the procurement of EVs for ride-hailing service BluSmart. As governance issues surfaced, directors Harsh Singh, Kuljit Singh Popli, and Arun Menon stepped down, with BluSmart also suspending operations.

BluSmart crisis: Green mobility’s red flag is giving HNIs bond blues

Economic Times

Economic Times · 4m ago

BluSmart crisis: Green mobility’s red flag is giving HNIs bond blues

High net-worth individuals (HNIs) and retail investors face uncertainty over BluSmart Mobility bonds, sold via fintech platforms like Yubi, Centricity, and Klub, as BluSmart halts operations and struggles with cash flow issues. The electric cab-hailing company’s failure to secure $50 million in funding and an ongoing investigation by Sebi into Gensol Engineering compound repayment concerns for bondholders, who fear repayment delays and defaults despite reassurances from BluSmart's founder.

My parents refuse to keep car due to BluSmart, they'll be heartbroken: Ex-Google MD

Inshorts · 4m ago

My parents refuse to keep car due to BluSmart, they'll be heartbroken: Ex-Google MD

Ex-Google MD Parminder Singh reacted to the BluSmart row regarding fund diversion, saying his elderly parents have "unwavering faith" in the ride hailing app. "They refuse to keep a car...saying, 'BluSmart hai na (There's BluSmart)'," Singh said. "I don't know exactly what went wrong but...they'll be heartbroken when I say, 'Ab BluSmart nahi hai (There's no BluSmart anymore)'," he added.

Gensol promoters quit board; BluSmart begins shutting ops

Economic Times

Economic Times · 4m ago

Gensol promoters quit board; BluSmart begins shutting ops

Gensol Engineering's promoters, Anmol and Puneet Singh Jaggi, resigned from directorial roles following a SEBI order barring them due to alleged financial misconduct. The regulator accused them of misusing company funds for personal luxuries. Concurrently, ride-hailing platform BluSmart, co-founded by Anmol Jaggi, began shutting operations amid failed fundraising and spillover effects from Gensol's troubles. SEBI plans to appoint a forensic auditor to examine Gensol's financial activities, while BluSmart navigates operational challenges.

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