BluSmart Cab Bookings Unavailable In Delhi, Bengaluru After SEBI Order On Gensol

India's market regulator SEBI has started an investigation into Gensol Engineering following allegations of electric vehicle (EV) loan misappropriation, TechCrunch has reported. The inquiry also envelopes BluSmart, a ride-hailing venture linked to Gensol that had been positioning itself as a competitor to Uber and Ola in India.

Following the development, BluSmart, the ride-hailing startup connected to Gensol, has abruptly discontinued new booking services via its app across major areas of Delhi-NCR and Bengaluru. 

However, the app remains downloadable from the official Google Play Store. Customers cannot select time slots or dates, suggesting a temporary cessation of operations.

The Securities and Exchange Board of India (SEBI) has issued restrictions against Gensol Engineering's founders, Anmol Singh Jaggi and Puneet Singh Jaggi, prohibiting them from maintaining executive positions in their publicly traded company and participating in securities markets during the investigation period. 

The Jaggi brothers are also co-founders of BluSmart Mobility.

Anmol Singh Jaggi was quoted as saying by TechCrunch that the firm was "fully cooperating" with the market regulator and is "putting together all the necessary documents and facts to clarify."

"This is just an interim step, not a final decision, and I'm confident that once everything's reviewed properly, our position will be clear. We've always believed in doing things responsibly, and that won't change," Jaggi said.

In its preliminary order, regulatory authorities alleged that the Jaggi brothers diverted significant loan funds for personal expenditures, including the acquisition of premium real estate near India's capital.