The BluSmart controversy involves allegations of financial mismanagement and fund diversion . The Securities and Exchange Board of India (SEBI) investigated Gensol Engineering Ltd., the parent company of BluSmart, and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi .
Key Points:
- Fund Misuse: Gensol allegedly misused ₹262 crore in loans intended for purchasing electric vehicles for BluSmart . These funds were reportedly diverted to personal luxuries, including a ₹42.9 crore apartment in Gurugram .
- Falsification of Records: The investigation uncovered efforts to falsify financial records using forged loan letters to deceive credit agencies and investors .
- Operational Halt: BluSmart has halted cab bookings following the SEBI investigation .
- SEBI Action: SEBI has barred Anmol and Puneet Singh Jaggi from the securities market and ordered a forensic audit of Gensol’s financial records .
- Ashneer Grover’s Involvement: BharatPe’s co-founder, Ashneer Grover, has stated that he is a “victim” of the situation, as he invested ₹1.5 crore in BluSmart and ₹25 lakh in Matrix . He clarified that he had no operational role in either Gensol or BluSmart and offered to reveal his financial details to prove his legitimacy .
- Aman Gupta’s Comments: boAt co-founder and Shark Tank India judge, Aman Gupta, emphasized the importance of ethics and governance in business in light of the BluSmart fraud . He noted the damage to investor trust and the startup ecosystem caused by financial mismanagement, urging founders to prioritize integrity, clean financial records, and transparent reporting over rapid growth .
- Discontinuation of Dubai Operations: BluSmart decided to discontinue its Dubai operations from April 2025 to focus on the Indian market .
In simple terms: BluSmart, an EV cab service, is facing a scandal because its parent company is accused of misusing funds meant for electric vehicles and falsifying financial records. This has led to a halt in BluSmart’s services and raised concerns about the company’s future .
