BluSmart Appoints Grant Thornton for Forensic Audit After Co-Founder Fund Diversion Allegations

Indian electric cab service BluSmart has appointed Grant Thornton to conduct a forensic audit following a regulatory investigation that revealed its co-founder allegedly diverted and misappropriated funds intended for purchasing vehicles, Reuters reported.

Grant Thornton has been tasked with examining BluSmart’s cash balance and fund transfers, according to a source. The insider also raised concerns about the company’s liquidity situation.

Grant Thornton is expected to investigate “where the funds are going” and determine “whether there was fraud there,” the report stated.

Gensol-BluSmart Fiasco

The Securities and Exchange Board of India (SEBI) has barred brothers Anmol Singh Jaggi and Puneet Singh Jaggi from participating in the stock market and has ordered a forensic audit of Gensol Engineering, the company responsible for procuring electric vehicles for BluSmart.

Additionally, SEBI announced plans to conduct a forensic examination of the financial records of BluSmart’s affiliated entities. The alleged misconduct centres on a ₹978 crore loan provided by state-backed institutions, the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), intended for the acquisition of 6,400 electric vehicles. According to SEBI, only 4,704 vehicles were purchased, leaving a ₹262 crore shortfall suspected of being misappropriated.

ED after Gensol

The Enforcement Directorate (ED) is set to probe Gensol Engineering under the Prevention of Money Laundering Act (PMLA), CNBC-TV18 reported. The agency is currently examining financial irregularities in the solar company’s operations and may soon seek additional information from relevant stakeholders, including regulatory bodies. This development follows the ED’s seizure of a stake in Gensol Engineering.

Meanwhile, sources from the Ministry of Corporate Affairs informed the outlet that a suo motu investigation has been initiated into alleged irregularities at Gensol Electric, a subsidiary of Gensol Engineering.

BluSmart Employees’ Pending Salary

Nearly 500 employees of BluSmart, the all-electric cab platform, are still awaiting confirmation regarding their March salaries, as the company has not yet made any disbursements, the Economic Times reported.

This follows an email earlier this month from BluSmart co-founder Anmol Singh Jaggi, reported by the Morning Context, assuring employees that all unpaid dues would be cleared.

BluSmart notified its staff of a delay in March salary payments due to ongoing cash-flow challenges, with Jaggi reiterating in the email that all outstanding payments would be settled by the end of April.