Puneet Singh Jaggi, co-founder of BluSmart, was detained by India’s Enforcement Directorate amid allegations of financial mismanagement and a ₹978 crore scam involving Gensol Engineering Ltd.
In a shocking turn of events for India’s startup ecosystem, Puneet Singh Jaggi, the co-founder of BluSmart, India’s first all-electric ride-hailing service, was detained by the Enforcement Directorate (ED) on April 25, 2025. The detention is reportedly connected to an ongoing money laundering investigation into alleged financial irregularities at Gensol Engineering Ltd., BluSmart’s parent company. Gensol has been accused of orchestrating a massive ₹978 crore (approximately $115 million) scam, which has led to a deepening probe into its operations.
BluSmart was founded in 2019 by brothers Anmol Singh Jaggi and Puneet Singh Jaggi, alongside Punit K. Goyal. The company quickly gained popularity for its eco-friendly, electric vehicle-based ride-hailing services, challenging established players like Uber and Ola. BluSmart expanded its services across major cities like Delhi-NCR, Bengaluru, and Mumbai, attracting significant investments, including from BP Ventures.
However, BluSmart’s rapid growth was overshadowed by recent financial troubles. In April 2025, the company suspended its operations in key cities, leaving thousands of drivers without jobs and customers stranded. The sudden suspension followed a ₹30 crore default on non-convertible debentures, raising serious concerns about the company’s financial stability.
The Enforcement Directorate’s investigation stems from a report by the Securities and Exchange Board of India (SEBI), which accused the Jaggi brothers of misusing funds intended for BluSmart’s electric vehicle purchases. SEBI claims that ₹663.89 crore out of a ₹977.75 crore loan was diverted for personal luxuries and non-business-related activities. Notable expenditures allegedly included a ₹42.9 crore apartment in Gurugram’s DLF Camellias, ₹26 lakh on golf equipment, and expensive spa sessions.
Additionally, SEBI has accused Gensol of forging loan documents to falsely demonstrate debt servicing and erode investor confidence. The company’s financial woes became more apparent as BluSmart’s suspension of services was followed by growing customer complaints and unprocessed wallet refunds, prompting an investigation by the Central Consumer Protection Authority (CCPA).
Further complicating matters, senior BluSmart executives, including CEO Anirudh Arun, resigned in April 2025 amid operational difficulties. The ED has also issued a look-out circular for both Puneet and Anmol Singh Jaggi, with reports indicating that Anmol is currently in Dubai. The agency is also investigating the brothers’ spouses in Pune.
As the investigation unfolds, there is growing speculation about potential money laundering charges, with the ED exploring whether diverted funds were funneled through shell companies or used for stock manipulation. The scandal has caused concern across India’s startup ecosystem, with industry figures like Aman Gupta of boAt warning that such incidents could erode investor confidence and harm the future of startups in the country.
While BluSmart’s future remains uncertain, talks of a potential stake sale to firms like Eversource Capital are underway, signaling the company’s attempt to salvage its position. However, this scandal highlights the need for transparency, proper governance, and accountability in India’s burgeoning startup scene.
