Electric ride-hailing platform BluSmart, which has ties to Gensol Engineering Ltd.'s fund-diverting Jaggi brothers, is not able to service customers across its three cities of operations. Cab rides across Mumbai, Delhi NCR and Bengaluru are unavailable on BluSmart's app, with no time slots till May 7.
This follows India's market regulator's interim order against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The order banned the brothers from accessing the securities market, and halted Gensol's proposed stock split. SEBI also directed the appointment of a forensic auditor to review the company's books.
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The order against the Jaggi brothers outlined instances of document fabrication and large-scale diversion of term loans sanctioned for electric vehicle procurement.
BluSmart, co-founded by the Jaggis, claims to be India's first and largest zero emission ride-hailing service. The app has over 30 lakh downloads and the platform has offered over 1.45 crore rides, according to the company website.
BluSmart was already in trouble late in March, when Refex Industries' green mobility unit withdrew a proposal to take over 2,997 electric vehicles worth Rs 315 crore from Gensol. These vehicles, in turn, were supposed to have been leased to BluSmart.
Refex Green Mobility, in a notice to investors, had said that both companies had mutually decided to not proceed with the transaction owing to "evolving commitments".
NDTV Profit has reached out to BluSmart for comments.
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