Is BluSmart Negotiating A Rescue Deal to Restart EV Cab Operations in May 2025?

BluSmart, the electric vehicle (EV) cab-hailing company, has faced a major setback after suspending operations earlier this month. The company, which started in 2019, is currently in talks with two major distressed funds focusing on climate and mobility to help revive its business. The company hopes to resume operations by May.

Trouble at BluSmart

The crisis at BluSmart stems from an interim order issued by the SEBI against the company’s co-founders, Anmol Singh Jaggi and Puneet Jaggi. SEBI has alleged that the brothers misused loans meant for purchasing EVs for personal expenses, including a luxury apartment in Gurugram and golf equipment worth Rs 26 lakh. This led to the suspension of operations.

Additionally, BluSmart’s operations are being complicated by a legal dispute over the fleet of electric vehicles it uses. The Delhi High Court has recently appointed a receiver to take possession of 95 Tata electric vehicles leased by BluSmart from Clime Finance Private Limited.

Clime Finance had filed a petition after BluSmart and Gensol defaulted on lease rentals. The company claims it is entitled to repossess the cars due to the default and safety concerns, as BluSmart ceased operations.

Condition for Revival of BluSmart

For the potential deal to succeed, one of the key conditions is that Anmol Singh Jaggi must step down from his position. The Jaggi brothers are also promoters of Gensol Engineering, another company that has faced regulatory scrutiny. SEBI has launched a forensic investigation into their renewable energy firm, highlighting concerns about fund mismanagement.

At 1:26 PM on Wednesday, the Gensol Engineering share price was down 5% and was trading at ₹77.29.

Conclusion

BluSmart’s future depends on how the negotiations with distressed funds unfold. The company needs significant changes, including the departure of its co-founder, to regain trust and resume services.

Read more on: BluSmart Brings in Grant Thornton for Forensic Audit After SEBI Probe

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