Outlook Business Desk
SEBI is probing BluSmart and its parent Gensol Engineering for alleged misuse of nearly Rs977 crore. Loans meant for electric vehicle procurement were reportedly diverted to fund luxury assets and personal expenses.
India’s most-hyped EV startup is now facing an image crisis, halted operations, and falling investor confidence. This saga raises red flags on public fund misuse and corporate governance in India's green mobility space.
BluSmart halted its services across Delhi-NCR, Mumbai, and Bengaluru following the SEBI order, leaving thousands of drivers without work. BluSmart Suspends Operations.
Gensol Engineering's stock has declined over 83% in 2025, reflecting investor concerns over governance and financial irregularities.
Two independent directors, Harsh Singh and Kuljit Singh Popli, resigned from Gensol's board, citing governance issues amid the ongoing investigation.
Facing operational challenges, BluSmart is reportedly considering transitioning from a ride-hailing service to a fleet operator model, potentially partnering with Uber.
Investigations revealed that a Gensol subsidiary, Wellray, was used to artificially inflate Gensol's stock price by accounting its trading volume over two and a half years.
SEBI has commenced a forensic audit of Gensol Engineering to delve deeper into the financial discrepancies and fund diversions.