BluSmart faces SEBI’s crackdown, services halted

With more than 8,500 EVs, more than 5,800 charging stations, and 10,000 active drivers, BluSmart has established a name for itself in Bengaluru, Mumbai, and Delhi-NCR's urban commuter market. However, the EV ride-hailing platform seemed to have gone down on Wednesday, leaving its fleet mostly off the road and thousands of regular users stranded. 

BluSmart, the EV ride-hailing business, seemed to have gone down on Wednesday, leaving its fleet mostly off the road and thousands of regular users stranded. 

Establishing 5,800+ charging stations, 10,000 active drivers and a fleet of 8,500 EVs, BluSmart swiftly and steadily made a name for itself in Bengaluru, Mumbai, and Delhi-NCR's urban commuter market.

The abrupt suspension followed market watchdog Sebi's decision to restrict BluSmart's promoter business, Gensol Engineering, from trading on the securities market due to claims of capital diversion and governance violations.

Moreover, the regular users are also concerned about the money stuck in their BluSmart app wallet. 

The service interruption came after Sebi's interim decision on Tuesday, in which it claimed that Anmol and Puneet Singh Jaggi misappropriated money obtained through loans intended for BluSmart's EV purchases and utilised some of the cash to buy a luxury property in Gurugram. Other governance violations, such as dealings with connected parties and misappropriation of company cash, were also brought to light by the ruling. 

Until further notice, the regulator prohibited both promoters from holding director or KMP posts at Gensol and from participating in the securities market. Additionally, Gensol was instructed to postpone its planned stock split.

Meanwhile, the disruption may be considerably more detrimental to drivers. Many drivers claim they are unclear about the future because BluSmart owns the fleet.

Citing a driver working at IGI’s T3 terminal, Times Of India reported, "We were told a vendor would check our cars tomorrow and that we shouldn't report to work," said Dileep, a driver waiting at IGI's T3 terminal. "If the company shuts down, we can't switch to other platforms. We don't own the cars."