BluSmart's Ride Hailing Crisis Amid Growing Regulatory Scrutiny

Passengers in Delhi-NCR, Bangalore, and Mumbai faced difficulties booking BluSmart cabs. Co-founded by Anmol Singh Jaggi, BluSmart has encountered financial troubles. Gensol Engineering and Jaggi are under Sebi investigation for fund diversion. Sebi has barred Gensol and its promoters from markets over governance lapses.

On Wednesday, numerous passengers in Delhi-NCR, Bangalore, and Mumbai found themselves unable to secure rides through the BluSmart app. This glitch led to widespread inconvenience among users relying on the electric vehicle service co-founded by Anmol Singh Jaggi, who is also a promoter of Gensol Engineering.

Amidst this service disruption, both Gensol and Jaggi are dealing with substantial challenges. The market regulator Sebi has put them under its scanner, concerned about financial mismanagement within the company. An investigation revealed issues related to fund diversion and governance lapses.

In an ongoing clampdown, Sebi has barred Gensol Engineering and its promoters from trading in securities markets. Furthermore, Anmol Singh Jaggi and Puneet Singh Jaggi have been prohibited from serving as directors or occupying key managerial roles in Gensol until further notice. This comes after allegations surfaced, alongside a complaint in June 2024, triggering Sebi's examination into potential share price manipulation.

(With inputs from agencies.)