BluSmart Seeks Rescue Deal To Resume EV Cab Operations Next Month

BluSmart, the electric vehicle (EV) cab hailing firm that suspended operations earlier this month, is in negotiations with two major climate and mobility focused distressed funds to rescue its business, according to a report by Business Standard. The troubled company is aiming to resume its services as early as May.

Deal Hinges on Founders' Exit

The potential revival deal comes with a significant condition -- the resignation of co-founder Anmol Singh Jaggi, according to a source cited in the report. BluSmart was established in 2019 by Anmol and his brother Puneet Jaggi, who are also promoters of Gensol Engineering.

Operations were halted following an interim order from market regulator SEBI against the Jaggi brothers. SEBI alleged that the Jaggi brothers diverted loans meant for funding BluSmart's electric vehicle purchases for personal use. These included a luxury apartment in DLF's The Camellias in Gurugram, and high-end golf equipment worth Rs 26 lakh.

This comes days after the Securities and Exchange Board of India (SEBI), which prohibited Gensol's promoters -- brothers Anmol and Puneet Jaggi -- from accessing stock markets and ordered a forensic investigation into their listed renewable energy company.

SEBI's interim report highlighted concerns about fund diversion by the Jaggi brothers and governance deficiencies within the company. The brothers stand accused of misappropriating term loans obtained by Gensol from state-run Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC).