BluSmart Suspends Services Amid SEBI Investigation into Fund Misuse

New Delhi: Ride-hailing service BluSmart has suspended operations in multiple cities following a Securities and Exchange Board of India (SEBI) interim order accusing the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, of diverting funds meant for electric vehicles (EVs) toward purchasing a luxury apartment in Gurugram.

The apartment, located in the upscale DLF residential project The Camellias, was reportedly purchased using funds borrowed by Gensol Engineering Limited (GEL), a company linked to the Jaggi brothers.

SEBI’s April 15 order also barred the duo from participating in the securities market. According to the regulator, Gensol borrowed Rs 978 crore between 2021 and 2024, with Rs 664 crore intended for acquiring EVs for BluSmart. However, investigations revealed that a portion of the loan was diverted to buy the luxury apartment through a network of entities. SEBI also noted that Rs 5 crore, initially paid by the Jaggi brothers’ mother to DLF as an advance, was traced back to Gensol funds.

The allegations come after BluSmart’s delay in salary payments for March, as the company faces cash flow issues. In an internal email, Anmol Singh Jaggi assured employees that all dues would be cleared by the end of April. Meanwhile, Gensol’s shares plunged 5% on the National Stock Exchange (NSE) following the revelations.

The scandal has raised concerns about financial management at both Gensol and BluSmart, with the ride-hailing service facing an uncertain future amid the investigation.