On May 7, 2025, the Delhi High Court in India barred Gensol Engineering Ltd and ride-hailing startup BluSmart from creating third-party rights over 220 additional electric vehicles (EVs) leased from two lessors. The court-appointed receivers to take possession of the vehicles, bringing the total number of EVs under judicial protection to 493, amid allegations of lease violations and financial irregularities.

Gensol Engineering Ltd, a renewable energy and EV solutions company, and BluSmart, an electric ride-hailing startup based in India, have come under further legal scrutiny. On May 7, 2025, the Delhi High Court barred both firms from creating any third-party rights over 220 additional electric vehicles leased from SMAS Auto Leasing India Pvt. Ltd and Shefasteq OPC Pvt. Ltd. This move brings a total of 493 EVs under judicial protection due to ongoing lease disputes.

The court, led by Justice Jyoti Singh, appointed receivers to take control of the vehicles, while denying the lessors’ plea for repossession under Section 9 of the Arbitration and Conciliation Act, 1996. Gensol was also directed to provide a detailed status report on the EVs within two days, as concerns about their current location and condition were raised.

The lessors accused Gensol and BluSmart of breaching lease agreements by failing to pay due amounts for rentals and fleet management, despite receiving regular invoices. SMAS alone had leased 210 vehicles to the two companies, and Shefasteq another 10, under separate contracts. The court emphasized the importance of preserving battery health and regular vehicle operation, especially under harsh weather conditions.

This is the third such order in under two weeks, following previous rulings that protected 175 EVs leased by Orix on April 25, and 95 EVs leased by Clime Finance on April 29.

The legal troubles come amid wider regulatory challenges for Gensol, which is facing a SEBI show-cause notice over undisclosed transactions and financial mismanagement. The Jaggi brothers, who promote Gensol, have been barred from holding senior roles in any listed company, and the firm has been restricted from capital market access.

Gensol is also being probed over the alleged misuse of approximately ₹978 crore in loans from Power Finance Corp. and IREDA. Investigations suggest that out of the 6,400 EVs the loans were meant to procure, only 4,704 have been accounted for. PFC has lodged complaints with Delhi Police’s Economic Offences Wing and may pursue insolvency or recovery actions.

Meanwhile, BluSmart has suspended its ride-booking app until May 7 and promised refunds within 90 days if operations remain halted.

Read the full article here: Gensol and BluSmart Under Fire: 493 EVs Seized in Legal Clampdown — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

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.

Read the full article here: India’s Green Ride-Hailing Giant Faces Its Darkest Hour — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).