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BluSmart Halts Services as SEBI Probe Into Gensol Uncovers Fund Diversion

SEBI's interim order accuses Gensol promoters of misusing EV loans, leading to operational paralysis at BluSmart and a potential pivot to Uber's fleet model.

BluSmart is in the soup after SEBI alleged financial misconduct by the promoters of the company.
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Anmol Singh Jaggi is accused of diverting company funds for personal use.
SEBI Bhavan at BKC Bandra in Mumbai.

Overview

  • The Securities and Exchange Board of India (SEBI) has barred Gensol Engineering's promoters, Anmol and Puneet Singh Jaggi, from management roles and market participation following allegations of fund diversion.
  • Gensol allegedly misused ₹262 crore from state-backed loans intended for EV purchases, redirecting funds for personal expenses, including luxury real estate and high-end goods.
  • BluSmart, a ride-hailing startup linked to Gensol, has suspended cab services in Delhi NCR, Mumbai, and Bengaluru until at least May 7, leaving customers seeking refunds for wallet balances.
  • Gensol's shares have plummeted nearly 90% from their 52-week high, with SEBI initiating a forensic audit to investigate corporate governance failures.
  • Reports suggest BluSmart is negotiating a shift to Uber's fleet platform as its standalone operations face uncertainty and financial strain.