Inside BluSmart’s Breakdown: 10 Shocking Twists in the Jaggi-Led Crisis

Gensol Engineering Ltd., the parent firm of the electric hailing startup BluSmart, is under investigation by the Securities and Exchange Board of India (SEBI) due to questionable financial diversions by the company's Promoters.  

Let's look at the top 10 significant developments in the investigation hinting at BluSmart's downfall.  

SEBI prohibited Gensol Engineering promoters Anmol and Puneet Jaggi from occupying key roles on April 15, 2025, for questionable fund misappropriation for Electronic Vehicle (EV) purchases for BluSmart.  

SEBI claims the diverted money of Rs 262 crore was destined to buy 6,400 EVs but was used on personal expenditure. Rs 43 crore on the luxury apartment and Rs 6.2 crore to their mother was done through company funds.  

The ride-hailing services in Delhi-NCR, Bengaluru and  Mumbai have been ordered halted, rendering thousands of drivers jobless and customers demanding refunds.  

Ashneer Grover, a renowned businessman, invested Rs 1.5 crore in BluSmart and Rs 25 lakh in Matrix, another Jaggi-associated company. He said that he is a victim of the alleged mismanagement. 

SEBI's probe uncovered Rs 50 lakh invested in acquiring Grover's startup, Third Unicorn Pvt Ltd. Grover claims contracts were adhered to, and diligence of sources of funds was taken care of by the investor.  

Grover denies claims of wrongdoing, stating that he has not been involved in BluSmart's or Gensol's operations and that the media is blowing his image by unfairly targeting him.  

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

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

BluSmart's latest fundraising effort of $50 million fell apart, partially because of the spill-over effect of Gensol's woes. 

Media Reports indicate that BluSmart might become a fleet partner with Uber after its suspended operations following the scandal.