Jaggi Brothers Out, BluSmart Crisis: 10 Big Developments Explained

The parent firm of electric ride-hailing startup BluSmart, Gensol Engineering Ltd., is under investigation by the Securities and Exchange Board of India (SEBI) due to claims of financial malfeasance.  

Anmol Singh Jaggi, a co-founder of Gensol, is accused of misusing almost Rs 262 crore meant to buy electric cars (EVs) for BluSmart, according to the Sebi probe. Let's see the top 10 points hinting at the downfall of the company.

1.SEBI's Interim Order 

SEBI prohibited Gensol Engineering promoters Anmol and Puneet Singh Jaggi from occupying key roles on April 15, 2025, for purported fund misappropriation for EV purchases for BluSmart. 

2. Diversion of Funds 
 

SEBI claims that Rs 262 crore, destined to buy 6,400 EVs, was diverted by the Jaggi brothers for personal use, including buying a Rs 43 crore luxury apartment and making a Rs 6.2 crore payment to their mother. 

3. BluSmart Operations
 

BluSmart halted its ride-hailing services in Delhi-NCR, Bengaluru, and Mumbai, rendering thousands of drivers jobless and customers demanding refunds. 

4. Ashneer Grover's Investment in BluSmart
 

Ashneer Grover invested Rs 1.5 crore in BluSmart and Rs 25 lakh in Matrix, another Jaggi-linked company. He says he is a victim of the alleged mismanagement. 

5. Investment in Third Unicorn
 

SEBI's probe uncovered that Rs 50 lakh of Gensol's money were invested in acquiring shares of Grover's startup, Third Unicorn Pvt Ltd. Grover claims that normal contracts were adhered to, and diligence on sources of funds is generally the investor's job. 

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6. Public Statements by Grover
 

Grover has denied any wrongdoing in public, stating that he is not involved in BluSmart's or Gensol's operations and that the media's representation unfairly targets him. 

7. SEBI's Forensic Audit
 

SEBI has ordered a forensic audit of Gensol and its associated entities to investigate the alleged diversion of funds and governance failures. 

8.BluSmart's Market Position
 

Before the scandal, BluSmart had more than 8,000 EV cabs on the road and held a 9% market share in New Delhi, making it a challenger to Uber and Ola. 

9. Failed Funding Round
 

BluSmart's latest fundraising effort of $50 million fell through, partially because of the spillover effect of Gensol's woes. 

10. Possible Switch to Uber
 

Reports are indicating that BluSmart might become a fleet partner with Uber, after its own operations were suspended.