Gensol & BluSmart’s ₹978 Cr Scandal: How India’s EV Dream Became a Nightmare

Hey there! If you’ve been scrolling through news apps or X lately, you might’ve caught wind of the massive drama shaking up India’s electric vehicle (EV) scene. Gensol Engineering and BluSmart, two names that were once hailed as the future of green mobility, are now at the center of a financial storm that’s got everyone talking.

So, what’s the deal? Why should you care? Grab a coffee, and let’s unpack this wild ride — complete with jaw-dropping numbers, shady dealings, and what it means for India’s EV ambitions.

The Rise: A Green Dream Takes Flight

First, let’s rewind. Gensol Engineering, founded by brothers Anmol and Puneet Jaggi, started as a solar power company back in 2007. Fast-forward to 2018, they jumped into the EV game by launching BluSmart, an electric ride-hailing service meant to take on Ola and Uber.

The pitch? Clean, zero-emission cabs that’d make cities greener while offering drivers steady gigs. Sounds like a win-win, right?

BluSmart’s app promised rides in Delhi-NCR, Bengaluru, and Mumbai, with a fleet of electric cars leased from Gensol. By 2023, BluSmart was boasting about 25 million trips and a revenue run-rate of ₹790 crore. Gensol, meanwhile, was riding high on the stock market, with its share price peaking at ₹1,147 and a market cap of ₹4,300 crore. Investors were pouring in — over 110,000 shareholders by March 2025, up from just 155 in 2020.

The Jaggi brothers were the poster boys of India’s clean tech boom. Anmol, a petroleum engineering grad, even said in a February 2025 press conference, “In 10 years, everyone in India should be able to get a BluSmart EV cab in five minutes.” Bold words. But then, things started to unravel.

The Fall: SEBI Drops the Hammer

On April 15, 2025, the Securities and Exchange Board of India (SEBI) dropped a bombshell. In a 29-page interim order, they accused Gensol and its promoters — the Jaggi brothers — of some seriously shady stuff.

Here’s the gist: Gensol had borrowed ₹978 crore from government lenders like the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) between 2021 and 2024. The plan? Buy 6,400 electric vehicles for BluSmart’s fleet. But by February 2025, only 4,704 EVs had been purchased, and a whopping ₹262 crore was missing.

Where’d the money go?

SEBI’s investigation reads like a soap opera. The Jaggis allegedly diverted funds to buy a ₹43 crore luxury apartment in DLF’s The Camellias in Gurugram, a ₹26 lakh golf set, and even sent ₹6.2 crore to their mother. They also funneled ₹25.76 crore to related entities, including a startup linked to Ashneer Grover. SEBI didn’t hold back, saying the brothers treated Gensol’s funds like a “personal piggy bank.” Ouch.

The fallout was brutal. SEBI barred Anmol and Puneet from the securities market and from holding any director roles at Gensol. They also halted Gensol’s planned stock split and ordered a forensic audit of the company’s books.

Gensol’s stock tanked 5% on April 16, hitting a one-year low of ₹122.68 — a staggering 84% drop since January 2025.

BluSmart Feels the Heat

BluSmart, meanwhile, is in freefall. On April 16, 2025, users in Delhi-NCR, Bengaluru, and Mumbai found the app completely useless — no ride slots available until at least May 7. Drivers are fuming, too. One told Fortune India that BluSmart’s been underpaying them for over a month, while others reported being asked to drive cars with worn tires and no spare wheels. Some vehicles have even been abandoned at parking hubs.

The company’s financial ties to Gensol are a big part of the problem. Gensol wasn’t just leasing EVs to BluSmart; it was practically bankrolling the operation. When Gensol’s cash dried up, BluSmart’s fleet couldn’t keep up. In March 2025, Refex Industries backed out of a ₹315 crore deal to buy 2,997 EVs from Gensol for BluSmart, citing “evolving commitments.” That was a red flag.

Now, rumors are swirling that BluSmart might ditch its ride-hailing business altogether and pivot to becoming a fleet partner for Uber. Shareholders have reportedly approved a plan to shift 700–800 vehicles to Uber’s platform in phases. If true, it’s a far cry from the “disrupt Ola and Uber” dream.

Okay, now the question comes, Why should you care about this mess?

For one, it’s a wake-up call about the risks of jumping on the EV hype train without digging deeper. Gensol and BluSmart sold a compelling story — green mobility, sustainable future, all that jazz. But behind the scenes, poor governance and financial mismanagement were brewing disaster. If you’re an investor or thinking of starting a business, this is a lesson in checking the fine print: Are the founders transparent? Are the numbers adding up?

For the average Indian, this saga hits closer to home. BluSmart’s collapse means fewer ride options in cities already struggling with traffic and pollution. Plus, the drivers — many of whom rely on these gigs for their livelihood — are getting the short end of the stick. And let’s not forget the ₹978 crore in public loans that were misused. That’s taxpayer money, folks.

On a bigger scale, this could dent India’s EV ambitions. The government’s pushing hard for 30% of vehicles to be electric by 2030, but scandals like this shake investor confidence and slow down progress. If companies like Gensol can’t deliver, who will?

What’s Next?

As of now, Gensol’s fighting to stay afloat. In March 2025, they announced a ₹600 crore fundraising plan — ₹400 crore through bonds and ₹200 crore via promoter warrants. But with SEBI’s forensic audit looming and their credit rating downgraded to junk by ICRA and CARE, it’s an uphill battle.

BluSmart, on the other hand, hasn’t issued an official statement, which isn’t helping their case. Posts on X are buzzing with angry customers and investors, with some calling it a “textbook case of corporate fraud.” One user pointed out BluSmart’s ₹215 crore loss in March 2023 and a monthly burn rate of ₹18 crore — numbers that don’t scream “sustainable business.”

From my point of view, this whole debacle is a gut punch to India’s startup ecosystem. It shows how even a great idea can crash if the people steering the ship prioritize personal gain over accountability. But it’s also a chance to learn. Stronger regulations, better oversight, and more investor scrutiny could prevent the next Gensol-BluSmart saga.

The Gensol-BluSmart story started with a dream of greener cities and ended with luxury condos and a SEBI ban. It’s a reminder that in the rush to innovate, integrity can’t take a backseat. Whether you’re a shareholder, a rider, or just someone who cares about India’s future, this is a story worth following.

What do you think — can BluSmart bounce back, or is this the end of the road? Drop your thoughts below, and let’s keep the banter going!

This article was written by the team at Books, Blurbs, and Banter. Stay tuned for more deep dives into business, economy, and trends that matter!