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Electric cab service BluSmart has temporarily shut down its operations in Delhi-NCR, Mumbai, and Bengaluru, leaving thousands of daily commuters without a ride and many customers unsure about how to recover the money they had loaded into the app’s digital wallet. Although the BluSmart app is still available on the Play Store, users cannot currently book or schedule rides. According to the app, services are suspended until May 7.
This unexpected move comes amid a financial investigation by the Securities and Exchange Board of India (SEBI), which has flagged several serious violations involving BluSmart’s co-founders and their parent company, Gensol Engineering Limited (GEL).
SEBI Accuses Founders of Diverting EV Funds for Personal Luxury Apartment
BluSmart was co-founded by Anmol Singh Jaggi and Puneet Singh Jaggi, who are also promoters of Gensol Engineering. SEBI recently issued an interim order against the brothers, banning them from accessing the securities market and halting a planned stock split for their company.
The regulatory body claims that Gensol took out loans to buy electric vehicles but funneled some of that money through a series of complex transactions to purchase a luxury apartment in Gurugram’s upscale Camellias complex. The apartment was allegedly bought under a firm in which both brothers are listed as designated partners.
SEBI’s order read, “Funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, Gurugram, in the name of a firm where the MD of Gensol and his brother are designated partners.”
Regulator Traces Questionable Transfers Involving Family and Business Partners
SEBI also raised concerns about how funds were moved around among related parties. The order noted that a ₹5 crore booking advance was made by Jasminder Kaur, the mother of Anmol Singh Jaggi, but this money too reportedly originated from Gensol.
“It was separately noted that ₹5 crore, which was initially paid as booking advance by Jasminder Kaur, mother of Anmol Singh Jaggi, was also sourced from Gensol,” SEBI said.
Even after the property developer DLF returned the booking advance to Kaur, the funds were not returned to the company, but instead ended up with another related party, SEBI added.
The regulator also claimed that Anmol Singh Jaggi transferred nearly ₹25.76 crore from Gensol to personal accounts and companies linked to him — including a transfer to a firm run by Ashneer Grover, the co-founder of BharatPe, called Third Unicorn.
SEBI Bars Jaggi Brothers, Orders Forensic Audit
As part of the crackdown, SEBI has temporarily barred Anmol and Puneet Jaggi from holding any top managerial positions in any listed companies. Gensol and its related firms have also been prohibited from trading on the securities market.
To dig deeper, SEBI has appointed a forensic auditor to review the financial records of the company and investigate further misuse of funds.
Between 2021 and 2024, two public sector lenders — Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) — granted Gensol Engineering loans totalling ₹978 crore. Out of this, ₹664 crore was specifically earmarked for buying 6,400 electric vehicles for BluSmart’s fleet.
However, in a February 2025 stock exchange filing, BluSmart disclosed that only 4,704 EVs had been purchased so far — much less than what was promised.
Business Already Showing Signs of Trouble Before SEBI Action
BluSmart’s troubles didn’t start with SEBI’s order. In March, Refex Industries’ green mobility division backed out of a deal to buy 2,997 electric vehicles worth ₹315 crore from Gensol. The setback raised early doubts about the company’s financial health.
More recently, reports suggested that BluSmart might stop running its own ride-hailing service altogether and instead shift to a fleet partnership model with Uber. According to Business Standard, the company may move around 700–800 of its electric vehicles to Uber’s platform in the near future.
Customers Left Stranded and Wallet Funds Locked
The suspension has caught regular BluSmart users off guard — especially those who had prepaid for future rides through the Blu Wallet, the app’s digital payment system. Unlike other ride-hailing platforms, BluSmart required users to pay upfront for each ride or top up their wallet in advance to book trips.
With services now suspended and no clear communication from the company, many users are unsure how to get their money back. The app lacks a dedicated refund option, and even contacting the support team has proven difficult.
How to Request a Refund from Blu Wallet
For customers looking to claim a refund, there is a way to reach BluSmart’s support team through the app, though the process is not very straightforward. Here’s how you can do it:
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Open the BluSmart app on your phone.
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Tap the menu icon (top-left corner) and go to the Help section.
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Select Blu Wallet from the list of topics.
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Scroll to the bottom of the FAQs and click the thumbs-down icon where it asks “Does this fix your issue?”
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This allows you to connect with the support team and request a refund.
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Once submitted, refunds are expected to be processed within a few business days.
In an email sent to customers on Thursday, BluSmart stated, “We’ve decided to temporarily close bookings on the BluSmart app,” but offered no specific explanation for the suspension. The email also promised that, “We will initiate a refund within the next 90 days if services do not resume before then.”
BluSmart had once been seen as a green and tech-forward alternative to ride-hailing giants like Uber and Ola, with an all-electric fleet that appealed to environmentally conscious riders. But the current financial controversy, coupled with service suspension and poor customer communication, has dented its credibility.
