Customers of BluSmart, the troubled electric vehicle ride‑hailing company, may face a wait of 90 days or longer to receive refunds from their Blu Wallets, even though the company’s ‘terms of use’ specify that Blu Wallet funds are strictly ‘non‑refundable’ and have ‘no expiry date,’ Business Standard reported.
BluSmart users have voiced concerns over the 90‑day refund period and the non‑refundable wallet policy, given that the company’s wallet functions as a closed‑loop system. Closed‑loop prepaid payment instruments (PPIs), like the BluSmart wallet, restrict users to purchasing services solely from the ride‑hailing company. Cash withdrawals from these wallets are not allowed.
Industry stakeholders have reportedly cautioned that regulatory intervention may be necessary if BluSmart fails to process refunds, especially amid indications of a potential complete shutdown of operations.
“For closed‑loop wallets, companies either rely on in‑house developers or authorise third‑party tech service providers for their customers. BluSmart, in this case, may have been operating its own wallet,” the report quoted the founder of a payment aggregator.
The founder further stated that if reimbursements are not processed, customers may pursue legal action, or a regulator could intervene. However, regulatory intervention may not be necessary at this stage, as the Reserve Bank of India (RBI) does not oversee closed‑loop wallets
The issuance or operation of such wallets is not classified as a payment system requiring RBI approval. As a result, these wallets are not supervised by the RBI.
Halt in Services
Previously, BluSmart abruptly halted cab bookings in major cities such as Delhi‑NCR, Bengaluru and Mumbai, leaving many commuters in a fix.
The Securities and Exchange Board of India (SEBI) barred Gensol Engineering Limited (GEL) and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from trading in the securities market following a complaint filed in June 2024. The complaint alleged share price manipulation and fund diversion from GEL, prompting SEBI’s interim order. Additionally, SEBI postponed the company’s proposed stock split due to concerns over fund misappropriation and stock price manipulation.
Although the BluSmart app remains available for download, customers can no longer book rides, as all time slots are marked unavailable.
