BluSmart's Suspension Casts Shadow Over India's EV Market

BluSmart, an electric cab service in India, has suspended operations following a market regulator's investigation into fund misuse by co-founder Anmol Jaggi. The suspension threatens the livelihoods of thousands of drivers. The company was a key player in promoting electric taxis in competition with Uber and Ola.

BluSmart, India's prominent electric cab service, temporarily halted its operations on Thursday. This decision came shortly after a market regulator uncovered that a co-founder misappropriated funds, originally meant for electric vehicles, to purchase a luxury apartment.

The suspension is a major setback for thousands of drivers who depend on BluSmart for their livelihood. The firm, which boasts over 8,000 taxis and several charging hubs across major cities like New Delhi, Mumbai, and Bengaluru, had positioned itself as a primary rival to Uber and Ola's gasoline-powered fleets.

Customers were informed via email about the temporary suspension of the BluSmart app without any clarification. Though there are social media concerns about blocked funds in BluSmart wallets, the company assured refunds within 90 days if services remain inactive. Meanwhile, queries from Reuters remained unanswered.

(With inputs from agencies.)