India’s ambitious shift toward electric mobility has seen startups rise and scale rapidly, promising cleaner cities and smarter transport. BluSmart, one of the frontrunners in this EV revolution, was seen as a shining example of sustainable innovation. With its fleet of all-electric cabs and charging infrastructure in urban hubs, BluSmart was poised to disrupt the ride-hailing space long dominated by Ola and Uber.
But that vision has now been clouded by a massive corporate scandal involving fraud, fund diversion, and governance failures, shaking not just investors but the entire EV startup ecosystem.
What Happened?
The Securities and Exchange Board of India (SEBI) launched an investigation into Anmol Singh Jaggi, co-founder of BluSmart Mobility and Managing Director of Gensol Engineering Ltd, which is BluSmart’s parent and funding partner.
SEBI’s findings were damning:
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Anmol Jaggi diverted public funds meant for EV procurement and business operations toward personal luxury expenses.
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These included:
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A ₹41 crore (INR 410 million) luxury apartment in DLF Camellias, one of the most elite real estate projects in Gurugram.
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A golf set valued at ₹25 lakh.
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Multiple undisclosed payments unrelated to business expenses.
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The funds in question were raised from the public through listed instruments and investors who were promised returns based on EV fleet deployment.
These transactions were masked through complex internal routing between Gensol Engineering, BluSmart affiliates, and dummy entities.
Who’s Involved?
SEBI has barred both Anmol Singh Jaggi and Puneet Singh Jaggi (his brother) from:
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Holding board or executive positions in any listed company,
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Participating in capital markets, and
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Directing financial transactions linked to Gensol and BluSmart.
A forensic audit has been ordered into Gensol Engineering Ltd, where SEBI cited a complete breakdown of internal financial controls.
Impact on BluSmart and Its Users
BluSmart, once operating over 8,000 EV taxis in cities like Delhi-NCR and Bengaluru, has suspended operations indefinitely. The company also operated multiple urban EV charging hubs, many of which are now non-functional.
Impacts include:
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Thousands of drivers were left jobless, many of whom had leased the EVs through company-backed schemes.
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Users with prepaid BluSmart wallet balances are now in limbo, with the company stating that refunds will be processed within 90 days, but many users remain sceptical.
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Ride-hailing competition temporarily benefits Uber and Ola, but investor confidence in EV-focused startups has taken a hit.
The Bigger Market Implication
This scandal has had a ripple effect across India’s EV and clean tech sectors:
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Stock Market Crash:
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Gensol Engineering’s shares plunged over 85% in 2025.
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Investor panic spread to other listed green energy and EV-adjacent companies.
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Loan Defaults and Public Sector Risk:
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Gensol defaulted on loans worth approximately ₹978 crore (~INR 9.78 billion), borrowed from government-backed institutions like IREDA and Power Finance Corporation (PFC).
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This has raised questions over due diligence and loan disbursal norms for green sector startups.
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Investor Sentiment:
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PE and VC firms have started pulling back from EV startup deals or increasing due diligence cycles.
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Confidence in publicly listed clean energy firms has dipped, potentially slowing down new listings or IPOS.
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Regulatory Crackdown:
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SEBI is now re-evaluating governance norms for companies in emerging sectors, particularly those raising public funds for sustainability-linked projects.
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A policy framework for “Green Corporate Governance” is being considered.
Why This Matters
India’s EV dream is not just a business opportunity—it’s a necessity. As climate change threatens urban health and infrastructure, clean mobility is crucial. BluSmart was among the few startups aligned with commercial viability and environmental goals.
However, this incident proves that no cause, no matter how noble, is immune to corruption if unchecked. Without transparency, even the most forward-looking ventures can become liabilities.
Final Thoughts
The BluSmart fraud case is a wake-up call for India's startup ecosystem, regulators, and policymakers. It underlines the importance of:
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Stringent financial auditing,
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Clear ethical standards,
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And greater public accountability when public money and climate goals intersect.
If India is serious about becoming a global leader in clean mobility, it must ensure that its innovators are bold and honest.
What’s your take on the BluSmart scandal? How should India protect its green tech future? Drop your thoughts in the comments or write to us—we’d love to hear from you.
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