- Saturday, April 19, 2025
The sudden suspension puts the livelihood of thousands of drivers at risk and has led to customers venting out their frustration on social media
By: India Weekly
ELECTRIC cab-hailing platform BluSmart remained non-operational on Thursday (17) across Delhi-NCR, Bengaluru, and Mumbai, as the market regulator cracked down on its co-founder over alleged misuse of funds at an affiliated company.
BluSmart app, that offered more than 8,000 taxis in the three metros, stopped taking bookings on Wednesday evening and its operations remain suspended on Thursday as well.
The sudden suspension puts the livelihood of thousands of drivers at risk and has led to customers venting out their frustration on social media.
After 32-year-old Mohammed Akhlakh completed his last ride in New Delhi late on Wednesday, he was asked by BluSmart officials to bring the car to the nearest hub as there was a “technical issue”, he told Reuters.
“Once I parked the car, I was asked to hand over the keys and not come to work,” said Akhlakh, adding his elderly parents, wife and two children depend on his monthly income of about $400.
The company, backed by BP Ventures, an arm of the global energy giant BP, did not immediately comment on the issue.
“We’ve decided to temporarily close bookings on the BluSmart app,” the firm said in an email to customers without giving any reasons.
Earlier this week, Sebi (securities and exchange board of India) banned brothers Anmol and Puneet Jaggi from the stock market and ordered a forensic investigation into their listed renewable energy company Gensol.
The investigation focuses on allegations that they used funds intended for procuring electric vehicles to purchase luxury apartments.
“I have almost 20K balance in BluSmart and today morning got this mail that BluSmart services are suspended. What is this??? When can get the refund of BluSmart is getting closed,” said a customer in a post on X on Wednesday and attached the screenshot of the company’s e-mail.
BluSmart in the e-mail assured to initiate a refund to customers within 90 days.
“We truly appreciate your support. While we strive to be back soon, we will initiate a refund within 90 days if services do not resume before that,” the e-mail said.
Another customer wrote on X: “I loved BluSmart. More than the money in the wallet, I am more concerned about driver partners who will be out of job until the saga plays out…”
The service became hugely popular – especially for airport rides – as BluSmart enticed customers with assurances of cleanliness and reliability. Its drivers, for example, were not allowed to cancel bookings, unlike Uber.
Meanwhile, Delhi Airport on Tuesday evening issued a passenger advisory, stating that “BluSmart has temporarily suspended its operations at Delhi Airport”.
Apart from providing services in the three Indian cities, BluSmart also offers premium all-electric limousine services in the UAE, which it launched last June.
The company, as on January 9, had a fleet of over 8,500 electric vehicles and a charging network of 5,800 stations across 50 hubs in Delhi-NCR and Bengaluru, and was supported by 10,000-plus active driver partners.
Sebi on Tuesday barred Gensol engineering and promoters – Anmol Singh Jaggi and Puneet Singh Jaggi – from the securities markets till further orders in a fund diversion and governance lapses case.
The regulator has also debarred Anmol and Puneet Singh Jaggi from holding the position of a director or key managerial personnel in Gensol until further orders.
Further, the markets watchdog directed Gensol Engineering Ltd (GEL) to put on hold the stock split announced by it.
The order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.
There is “a complete breakdown of internal controls and corporate governance norms in Gensol … the fund diversion primarily occurred in the context of electric vehicle (EV) purchases intended for leasing to a related party,” SEBI said in its order this week.
“Funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, DLF,” for $5million, it added, referring to one of India’s most expensive luxury apartment complexes.
Other alleged diversion of funds by Anmol Jaggi, according to the market regulator, included utilization of funds for “personal use”, and a $30,379 payment which “appears to be related to purchase of golf set”, the order stated.
Gensol has said it will comply with the market regulator’s directives. Its shares are down 85 per cent so far this year. (Agencies)
