The Fall of BluSmart: Uncovering the Taxi Fraud in India

BluSmart, launched in 2019, emerged as India’s first all-electric ride-hailing service, aiming to revolutionize urban mobility with sustainable and reliable transportation. Founded by Anmol Singh Jaggi, Puneet Singh Jaggi, and Punit K Goyal, BluSmart quickly gained traction for its fleet of electric vehicles and high service standards. Unlike competitors like Uber and Ola, BluSmart offered cleaner, well-maintained cars and polite drivers, positioning itself as a premium yet affordable option. Its commitment to eco-friendliness and customer satisfaction made it a favorite in cities like Delhi-NCR, Bengaluru, and Mumbai.

BluSmart’s Meteoric Rise

BluSmart’s early years were marked by strategic partnerships and substantial funding. In January 2019, it partnered with Mahindra & Mahindra (Mahindra Partnership) to launch its initial fleet of electric vehicles, setting the stage for rapid expansion. By 2025, BluSmart operated over 8,000 electric cars across multiple cities. Key partnerships with Jio-BP for EV charging infrastructure and Tata Motors for 10,000 EVs strengthened its operations. In July 2024, the company raised $24 million from investors like Responsability Investments and MS Dhoni’s family office (Economic Times). BluSmart’s focus on sustainability earned it Verra accreditation for carbon emission reduction, cementing its status as a clean-tech leader.

SEBI’s Shocking Revelation

In April 2025, BluSmart’s promising journey screeched to a halt when the Securities and Exchange Board of India (SEBI) issued an interim order exposing severe financial irregularities (India Today). The order targeted promoters Anmol and Puneet Singh Jaggi, who were also behind Gensol Engineering, a company supplying BluSmart’s electric vehicles. SEBI alleged that the Jaggi brothers diverted ₹262 crore from ₹830 crore in loans secured from the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) between 2021 and 2024. These funds were meant to purchase 6,400 electric vehicles, but only 4,704 were acquired, costing ₹568 crore. SEBI described the promoters as treating Gensol like a “personal piggy bank,” highlighting a collapse in corporate governance.

Details of the Financial Wrongdoing

The extent of the financial misconduct was staggering. The Jaggi brothers allegedly spent company funds on personal luxuries, including a ₹43 crore apartment in Gurugram’s The Camellias and a ₹26 lakh golf set from TaylorMade (Tice News). Over ₹11 crore was transferred to family members, with ₹6.2 crore to their mother and ₹2.99 crore to Anmol Jaggi’s wife. Other questionable payments included ₹50 lakh to Third Unicorn Pvt Ltd and ₹1.35 crore to BatX Energies. SEBI also uncovered falsified financial records to hide a loan default in December 2024 and misleading claims of 30,000 EV pre-orders at the Bharat Mobility Global Expo in January 2025, which were non-binding MOUs. These actions led to a 5% drop in Gensol’s stock price to ₹123, with a 48% decline over the past month and an 84% fall since early 2025.

Impact on BluSmart and Its Users

The SEBI order had immediate repercussions for BluSmart. On April 17, 2025, the company suspended ride bookings, leaving users in Delhi-NCR, Bengaluru, and Mumbai unable to book rides (Times of India). BluSmart notified users that if services didn’t resume within 90 days, wallet balances would be refunded. This abrupt halt caused widespread frustration, with passengers voicing their disappointment on X, one user lamenting, “Another service one got used to, lost to mismanagement” (BBC News). The suspension disrupted daily commutes and airport transfers, and Delhi International Airport issued advisories about alternative taxi options (TechStory). BluSmart’s daily trips, once peaking at 25,000–30,000 in 2023, had already halved by early 2025.

The Uncertain Future of BluSmart

BluSmart’s future hangs in the balance. Reports suggest the company is exploring a pivot to supply its electric vehicle fleet to rivals like Uber, potentially abandoning its independent ride-hailing model (Tice News). This shift would mark a significant retreat from its original vision. Rebuilding trust with users and investors will be challenging, especially after defaulting on bond payments and delaying salaries due to cash flow issues (Wikipedia). The scandal has broader implications for India’s startup ecosystem, raising concerns about investor due diligence and consumer protection. It underscores the need for robust governance to support sustainable innovation.

Conclusion

The BluSmart fraud is a sobering lesson in the importance of ethical leadership and financial transparency. What began as a beacon of sustainable mobility has been tarnished by greed and mismanagement. As BluSmart navigates this crisis, stakeholders must advocate for stronger oversight to prevent similar failures. India’s startup ecosystem, vital for innovation, depends on trust and accountability to thrive. The road ahead for BluSmart is uncertain, but its story serves as a call to action for better governance in the pursuit of progress.

Financial Misconduct Breakdown

Key Citations

• BluSmart Shuts Operations After SEBI Exposes Gensol Fraud

• BluSmart Scam Exposed: Luxury Flats, Golf Sets, EV Loan Fraud

• BluSmart Breakdown: How Uber’s EV Rival Collapsed in India

• Everything You Need to Know About BluSmart Fraud

• BluSmart Users Stranded as Firm Suspends Operations

• BluSmart Mobility Wikipedia Page

• BluSmart Raises $24 Million in Funding Round

• Uber in Talks to Acquire BluSmart, Startup Denies Reports