Why Are BluSmart Cabs Suddenly Off the Roads? Who To Blame Now

Gensol, the renewable energy firm connected to BluSmart, an electric taxi business, is in serious financial difficulty. BluSmart, which started competing with Uber using green cabs, depends on Gensol for capital and a rented car fleet. 

Recent news points to Gensol's growing debt, which has squeezed BluSmart's liquidity. Without fresh external funding, BluSmart's expansion in India's competitive ride-hailing industry is grinding to a halt.

SEBI 's Crackdown on Gensol Promoters

The Securities and Exchange Board of India (SEBI) has taken stringent measures against the promoters of Gensol Engineering Ltd., Anmol Singh Jaggi and Puneet Singh Jaggi, preventing them from holding positions of key responsibility and engaging in the securities market. 

The action comes as a result of allegations of misappropriation of Rs 9.78 billion of loans meant to be used for buying electric vehicles for BluSmart, an EV ride-hailing company founded by the Jaggi brothers.

BluSmart's Operational Disruptions

Following the investigation by SEBI, BluSmart's services have been disrupted across big cities such as Delhi-NCR, Bengaluru, and Mumbai. Users complained of not being able to book rides via the app, leaving many stranded. The company has not made official statements about the service disruptions. 

A user posted about the discontinuation on X:

“I wonder if the refund includes the money in the BluSmart wallet. But as a BluSmart customer, the entire thing is just sad,” he wrote.

Gensol’s Debt Puts BluSmart Off the Road

SEBI's investigation found that Gensol misdirected more than Rs 200 crore for EV purchases. Some of these amounts were purportedly spent on personal expenditure, such as buying a luxury flat in Gurgaon's DLF Camellias. 

Further, Gensol also defrauded investors by stating pre-orders for 30,000 EVs, which were nothing but a non-binding Memorandum of Understanding.

ALSO READ: Mismanagement, Scamster! BluSmart Cab Saga Triggers Furore On the Internet

Effect on BluSmart's Future Plans

BluSmart's previous effort to raise $50 million did not work out, in part thanks to the disruption caused by the financial issues in Gensol. The young company, which was looking for an IPO by the second half of 2025, currently has an indefinite future ahead. 

According to media sources, BluSmart is looking into a pivot by becoming a fleet partner for Uber. The promoters' financial malpractice has not only prompted regulatory measures but also substantially harmed BluSmart's business and prospects.