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synopsis
The BluSmart Cab Saga involving Anmol Singh Jaggi and Puneet Singh Jaggi and the Gensol Engineering Limited (GEL) has sparked a massive uproar on the internet with netizens questioning the integrity in and financial mismanagement of founders in the business world.
According to Securities and Exchange Board of India (SEBI)'s damning 29-page interim report, the Jaggi brothers indulged in systematic financial misappropriation, siphoning off hundreds of crores from company coffers for personal luxuries and speculative market manipulation.
From forging ‘no default’ certificates purportedly issued by lenders such as IREDA and PFC to mislead regulators, to rerouting sanctioned loans for lavish personal use.
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‘What a shame’: BluSmart cab saga triggers furore online
Social media users are questioning the prevalence of ethical practices and responsible financial management in the business world. Netizens are expressing outrage over the greed, fraud, and declining ethical standards displayed by business founders, saying such misconduct harms the country as a whole.
A user wrote, "What a shame… BluSmart goes down thanks to yet another case of Founders diverting funds for personal use…Indian Founders need to do some serious soul searching… Most of these Startup bros are a classic case of sharp minds with a business idea, raising money on astronomical valuations, but lacking the intent and integrity to build something long term… The moment these jokers raise money, their greed takes over, their pants drop in desperation and they do stupid things only to get exposed and bring more shame to India… Laanat hai inn bewakoofon par…”
Another user commented, “Really sad to see another promising startup struggle due to financial mismanagement—integrity matters more than ever in the ecosystem.”
Taking a dig at BluSmart by disclosing the company's list of investors and shareholders, a user said, “Looks like BluSmart took lots of investors for a ride (pardon the pun!)”
A third user wrote, “Degrading #Ethical & #Governance standard are the biggest #risks for corporate india now. Complex web of corporate entities must be discouraged. Sad that institutions like IREDA & PFC have not learnt any lession even from #ILFS fiasco.”
Where did EV funds go?
According to media reports, SEBI revealed that Anmol Singh Jaggi transferred Rs 25.76 crore from Gensol to his personal accounts and some related companies. A portion of this money was also sent to Ashneer Grover's company, Third Unicorn.
Two government financial agencies, IREDA and PFC, granted loans totaling Rs 978 crore to Gensol between 2021 and 2024. Rs 664 crore was specifically for purchasing 6,400 electric vehicles (EVs) to be leased to Blusmart. However, in February 2025, the company disclosed having purchased only 4,704 vehicles.
The investigation unearthed that the duo channelled company funds to purchase a luxury flat in The Camellias, an ultra-exclusive residential enclave in Gurugram. The Rs 43-crore apartment, initially booked in their mother’s name, was later transferred to Capbridge Ventures, a firm owned by the brothers. SEBI also found that Rs 775 crore was funnelled to Go-Auto, a dealership used to acquire electric vehicles for BluSmart, a ride-hailing company.
Of this, only Rs 570 crore was used for the stated purpose; the remaining Rs 205 crore, including the flat payment, was siphoned off for unrelated ventures.
The lavish indulgences didn’t stop at real estate. The report reveals appalling expenditures: Rs 26 lakh on golf sets, Rs 23 lakh to settle credit card bills, and Rs 8 lakh on plush interior décor—all funded through the misused loans.
The promoters deployed a Gensol subsidiary, Wellray, to engineer a fictitious market for Gensol’s shares. Over two-and-a-half years till December 2024, Wellray accounted for nearly 99% of the stock’s total trading volume, fabricating demand and inflating the stock price.
BluSmart begins shutting operations
BluSmart, the fast-rising cab company with an all-electric fleet, has started suspending its operations, leaving thousands of users in cities like Delhi, Bengaluru and Mumbai, in a flap. BluSmart may exit its core business and function as a fleet partner for its rival Uber, the Economic Times reported today. The newspaper cited sources as saying that BluSmart's shareholders approved a plan to begin the transit of its fleet to Uber over the next few weeks.
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