BluSmart Shutdown Is This The End Of India’s Electric Cab Pioneer Heres What’s Really Happening

Electric mobility startup BluSmart, once hailed as India’s clean alternative to ride-hailing giants, has suddenly suspended bookings in Delhi-NCR and Bengaluru. While its app remains live, the halt in services has triggered a wave of concern—what led to this breakdown? And could it mark the end of BluSmart’s operations? What Happened? The disruption follows explosive revelations from the Securities and Exchange Board of India, which is probing financial irregularities at Gensol Engineering—a key supplier of EVs to BluSmart and closely linked to its operations. According to SEBI, Gensol misused more than ₹200 crore sanctioned by public lenders for EV procurement. Out of ₹977 crore borrowed to purchase 6,400 electric vehicles, only 4,700 were actually bought—leaving over ₹260 crore unaccounted for. At the center of the scandal is Anmol Singh Jaggi, co-founder of both Gensol and BluSmart. SEBI alleges he siphoned off nearly ₹26 crore for personal use—covering everything from a luxury apartment to golf gear, foreign travel, and even a transfer to a startup founded by Ashneer Grover. The misappropriation wasn’t limited to individual gains. Gensol and related entities submitted forged documents to credit rating agencies, manipulated stock trades, and routed funds through shell companies—painting a picture of corporate governance gone rogue. In response, SEBI has barred the Jaggi brothers from holding board positions or accessing the securities market. It has also halted a proposed stock split and appointed a forensic auditor to continue investigations. Meanwhile, the ground reality for BluSmart worsens. With top executives stepping down in recent weeks—including the CEO, CTO, and CBO—there’s growing speculation that BluSmart is pivoting away from its ride-hailing model altogether. Reports suggest the company may become a fleet partner for Uber, transferring up to 800 EVs to the latter’s platform. But so far, no official confirmation has emerged. The Fall of BluSmart As BluSmart’s future hangs in the balance, the broader fallout touches more than just its customers—it’s a cautionary tale for India’s startup ecosystem. What began as a mission to decarbonize urban mobility has now turned into one of the country’s most high-profile corporate governance scandals.