BluSmart begins shutting cab-hailing operations in THESE cities amid fraud by Gensol promoter Anmol Singh Jaggi

Gensol Engineering promoter Anmol Singh Jaggi's electric cab operations firm, BluSmart, started suspending operations in Delhi NCR, Mumbai and Bengaluru, reported The Economic Times on Thursday, April 17. 

The users trying to book their electric vehicle (EV) rides were unable to do so from the Delhi airport and some other localities in Delhi and Gurugram, as per the report.

“Please note, BluSmart has temporarily suspended its operations at Delhi Airport. However, there are adequate cab and taxi services available,” the Delhi international airport said in a passenger advisory cited by the news portal.

The report also mentioned that the cab operations firm was losing more than ₹20 crore every month and was shutting down its operations after failed attempts to raise fresh capital for the business. 

It may be noted that the promoter of BluSmart and Gensol Engineering, Anmol Singh Jaggi, is facing a securities fraud and forgery accusation by the Securities and Exchange Board of India (Sebi).

“The promoters were running a listed public company as if it were a proprietary firm. The company’s funds were routed to related parties and used for unconnected expenses, as if the company’s funds were promoters’ piggy bank,” Sebi said in a statement.

The markets regulator has barred the brothers involved in the fraud from holding any position in Gensol or from trading in securities until further notice. They also proposed a 1:10 stock split of the firm, after Sebi appoints a forensic auditor to look through its books for any further irregularities. 

BluSmart to exit cab-hailing service

In April, there were reports that BluSmart was looking to exit its core business and pivot to operating as a fleet partner of rival Uber. This move from the company comes after six years of entering India's mobility market.

BlueSmart shareholders approved a plan to start the transit phase of its fleet from its platform to Uber over the next few weeks, reported The Economic Times, citing people aware of the development.

The report cited that the shutdown of operations will start with 700 to 800 cars. 

As per the report, the daily rides for the company have dropped to less than half of the 25,000-30,000 rides which BluSmart was offering at its peak of operations in 2023.

In September 2022, the all-electric cab-hailing company complained about the limited availability of EV car models in India and how the retail buying segment had become stronger, putting pressure on the taxi segment of Indian automakers selling these vehicles, according to an earlier report by Mint.

(Livemint couldn't independently verify the report.)