BluSmart suspends cab bookings in Delhi-NCR, Bengaluru amid SEBI action against Gensol Engineering

Ride-hailing startup BluSmart has reportedly suspended new ride bookings in most parts of Delhi-NCR and Bengaluru, as concerns mount following regulatory action against a connected firm, Gensol Engineering Ltd.

Though the BluSmart app remains listed on the Play Store, users are unable to book rides or select time slots, indicating an abrupt halt in services, reported Moneycontrol.

The development comes a day after the Securities and Exchange Board of India (SEBI) barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities markets, citing serious lapses in corporate governance and alleged fund diversion.

SEBI directed the promoters to step down from any directorial or key managerial positions in Gensol until further orders. A planned stock split by the company has also been put on hold.

According to SEBI’s 29-page interim order, the promoters allegedly treated the listed entity as a proprietary firm, diverting corporate loans and funds for extravagant personal expenditures, including the purchase of a luxury apartment at The Camellias in DLF Gurgaon, a ₹26-lakh golf set, credit card bills, and transfers to close relatives.

The regulator noted that Gensol had secured ₹977.75 crore in loans, of which ₹663.89 crore was earmarked for the purchase of 6,400 electric vehicles (EVs) to be leased to BluSmart, a related party. However, only 4,704 EVs were procured till date, according to Gensol’s own admission and confirmation from supplier Go-Auto Private Limited.

The estimated cost for the 6,400 EVs, including a required 20% equity infusion, stood at ₹829.86 crore, leaving ₹262.13 crore unaccounted for.

SEBI’s probe revealed that funds purportedly paid to Go-Auto were often routed back to Gensol or entities linked to the Jaggi family. A portion of these funds were used to purchase a high-end apartment through Anmol Singh Jaggi’s Capbridge Ventures and to invest in Ashneer Grover's startup, Third Unicorn.

The order further stated that Anmol Singh Jaggi diverted ₹6.20 crore to his mother, Jasminder Kaur, and ₹2.98 crore to his wife, Mugdha Kaur Jaggi. Puneet Singh Jaggi allegedly transferred ₹1.13 crore to his wife, Shalmali Kaur Jaggi, and ₹87.52 lakh to his mother.

SEBI slammed the promoters for treating Gensol’s finances like a “personal piggy bank” and warned that the diverted funds could ultimately lead to losses for the company's investors.

As of now, BluSmart has not issued an official statement regarding the suspension of its services or the SEBI order.