In a stunning turn of events, ride-hailing platform BluSmart, once hailed as India’s eco-conscious answer to Uber and Ola, has ground to a halt across its key markets—Delhi-NCR, Bengaluru, and Mumbai. Users trying to book EV rides this week were met with a dead-end. But the app’s silence is only the tip of the iceberg.
Behind the scenes, an alarming saga of alleged financial misconduct, corporate governance failures, and regulatory violations involving its parent company Gensol Engineering Ltd. has come to light.
Credits: The Financial Express
Services Suspended Without Warning
Users began reporting issues on Wednesday, when the BluSmart app stopped allowing ride bookings or even scheduling future travel. In Delhi, even the Indira Gandhi International Airport, a major hub for BluSmart rides, issued advisories acknowledging the disruption.
Despite the disruption, the BluSmart app remains active on the Play Store, adding to the confusion. The company has not issued any official statement regarding the sudden service suspension, though sources say they have started notifying users that wallet refunds will be processed within 90 days.
Cracks in the Foundation: Unsafe Cars, Unpaid Drivers
While the app showed no signs of life, the real chaos was unfolding behind the scenes. Drivers were reportedly asked to operate vehicles with worn-out tyres, without spare wheels, and poor maintenance. Some EVs were even abandoned at BluSmart’s parking hubs.
To make matters worse, multiple drivers had not received their salaries on time, further demoralizing the workforce and adding to operational instability.
SEBI Steps In: Web of Financial Manipulation
The real bombshell came when SEBI (Securities and Exchange Board of India) launched an investigation into Gensol Engineering, BluSmart’s parent company. Gensol, which primarily deals in solar EPC projects, also manages an electric vehicle leasing arm that supplies BluSmart’s fleet.
According to SEBI’s initial findings:
₹262 crore out of ₹978 crore in green energy loans (2021–2024) were diverted from their intended purpose.
These loans from IREDA and PFC were meant to fund the procurement of 6,400 EVs, but only 4,704 were actually bought.
The rest? Routed through a complex network of related-party transactions, shell entities, and personal accounts.
Luxuries Over Logistics: Where the Money Went
SEBI’s findings revealed shocking personal indulgences by the promoters:
- ₹42.94 crore used to buy a luxury apartment in DLF Camellias, Gurgaon, via a related firm, Capbridge Ventures LLP, controlled by Anmol Singh Jaggi, one of Gensol’s promoters.
- ₹6.2 crore transferred to his mother, and another ₹2.98 crore to his wife.
- ₹25.76 crore was allegedly routed into personal accounts and startups like Third Unicorn, founded by Ashneer Grover.
- Expenses also included a ₹26 lakh golf set, luxury foreign trips, and lavish credit card payments.
These transactions were facilitated through entities like Go-Auto Pvt Ltd, Wellray Solar Industries, and Gosolar Ventures, forming a complex circular money trail to obscure the misuse.
EV Sector at a Crossroads
BluSmart’s collapse isn’t just a story of one failed startup—it’s a red flag for India’s rapidly evolving clean mobility and green financing space. Investors, lenders, and regulators will now think twice before pouring capital into EV startups that rely on opaque financing structures and interlinked entities.
The episode could trigger a regulatory overhaul in how state-backed green loans are disbursed and tracked, particularly for electric vehicle procurement and infrastructure.
Credits: The Indian Express
What’s Next?
As users await wallet refunds and drivers seek unpaid wages, BluSmart’s future remains uncertain. SEBI’s probe is ongoing, and the ripple effects are likely to impact Gensol’s core solar EPC business as well.
From being a poster child of sustainable urban mobility to becoming an example of what can go wrong without accountability, BluSmart’s story is a sobering reminder: green does not always mean clean—especially when the numbers don’t add up.
