Mumbai: 

Electric cab-hailing platform BluSmart remained non-operational on Thursday 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.

The company, backed by BP Ventures - an arm of the global energy giant BP - did not immediately offer any comments on the issue.

BluSmart app, which offered more than 8,000 taxis in the three metros, stopped taking bookings on Wednesday evening and remained unoperational 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.

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.

"We've decided to temporarily close bookings on the BluSmart app," the firm said in an email to customers without giving any reasons.

"I have almost 20K balance in BluSmart and today morning got this mail that BluSmart services are suspended. What is this??? When can we 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.

"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.

BluSmart assured in the email assured to initiate a refund to customers within 90 days.

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 a job until the saga plays out..."

Meanwhile, Delhi Airport on Tuesday evening issued a passenger advisory, stating that "BluSmart has temporarily suspended its operations at Delhi Airport".

The company, as of 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.

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.

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.

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.

Further, the markets watchdog directed Gensol Engineering Ltd (GEL) to put on hold the stock split announced by it.

According to Sebi's order, Gensol Engineering secured a total of Rs 977.75 crore in loans from IREDA and PFC, of which Rs 663.89 crore was meant specifically for the purchase of 6,400 electric vehicles (EVs). EVs were procured by the company and subsequently leased to BluSmart, a related party.

Given that Gensol was also required to provide an additional 20 per cent equity contribution, the total expected outlay for the EVs was around Rs 829.86 crore. By that calculation, Rs 262.13 crore remains unaccounted for.

However, in a response submitted to Sebi in February, Gensol admitted that it had procured only 4,704 EVs till date -- far less than 6,400 for which it had received funding.

This was corroborated by Go-Auto Private Limited, the EV supplier, which confirmed delivering 4,704 units to the company for a total consideration of Rs 567.73 crore.

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