BluSmart appoints Grant Thornton for forensic audit following Sebi scrutiny

BluSmart Co-founder Anmol Jaggi has been accused of misappropriating funds meant for electric vehicle purchases for personal gain

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Electric cab service BluSmart has appointed Grant Thornton to conduct a forensic audit of its operations, following a regulatory probe into alleged financial misconduct by co-founder Anmol Jaggi, Reuters reported on Wednesday. The move comes after the Securities and Exchange Board of India (Sebi) barred Jaggi from accessing the securities market over accusations of diverting funds meant for electric vehicle purchases.

 

Citing sources familiar with the matter, Reuters reported that Grant Thornton will be examining BluSmart's financial health, with a specific focus on the movement and utilisation of funds. One source said the company's cash position appeared concerning and raised the possibility of fraud. The appointment of the auditing firm signals the company’s attempt to restore transparency and trust amid mounting scrutiny.

 

Gensol crisis, Sebi order

BluSmart, a rising competitor to Uber and Ola in India’s ride-hailing sector, operated over 8,000 electric taxis and established substantial charging infrastructure in cities like Delhi, Mumbai, and Bengaluru. In 2023, it reported a 9 per cent market share in the capital city.  ALSO READ | DLF Camellias flat for ₹43 cr, ₹6.2 cr to mother: Where Gensol funds went

 

The crisis erupted after Sebi uncovered that Jaggi had allegedly siphoned funds from his listed firm, Gensol Engineering—an EV procurement entity that leased cars to BluSmart—for personal expenditures. These included the purchase of a luxury Rs 42 crore apartment in Gurgaon’s DLF Camellias, along with other indulgences such as international travel, golf gear, luxury goods, and transfers to family accounts.  

The root of the alleged misconduct lies in a ₹978 crore loan granted by state-backed entities, Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC), for the acquisition of 6,400 electric vehicles. The market regulator's findings reveal that only 4,704 were procured, leaving a ₹262 crore discrepancy that is believed to have been misappropriated. 

 

BluSmart halts ride bookings, mass resignation

Following the fallout at Gensol Engineering, many top executives handed in their resignations at BluSmart. The company also suddenly halted cab services, leaving many users, who still had money in their app wallets, in a state of limbo. The company has tried to assure customers that they will be up and running again. 

 

BluSmart is yet to issue any official statement on the crisis. Key investor bp ventures, a  subsidiary of British energy giant BP, had also remained silent on the developments.

 

The forensic audit should help shed light on the extent of financial irregularities and help determine the future course of action for the beleaguered cab-hailing app.