 "Amid Gensol crisis, BluSmart says wallet refunds will take up to 90 days")
Electric ride-hailing startup BluSmart has extended the refund timeline for wallet balances to 90 days, up from the six days announced earlier this week, following a suspension of ride bookings across the cities in which it operates.
This comes against the backdrop of an investigation by the Securities and Exchange Board of India (Sebi) into Gensol Engineering, a company linked to BluSmart, which allegedly misappropriated more than ₹200 crore that had been designated for the acquisition of electric vehicles.
Sebi has barred Anmol Singh Jaggi and Puneet Singh Jaggi, the promoters of BluSmart, from board roles and securities market access, alleging that they diverted loans intended for vehicle financing to real estate deals.
Three-month wait for customer refunds
BluSmart, which operates in Delhi-NCR and Bengaluru, enabled users to add funds to their in-app wallets for payment for electric cab rides. Several users have voiced concerns on social media about the lack of transparency regarding the refund process.
The suspension of bookings by BluSmart on April 16 left many users feeling frustrated. In the absence of official communication, customers took to social media to voice their dissatisfaction and request refunds for the funds remaining in their in-app wallets. Several users faced difficulties and are repeatedly contacting the company’s helpline for assistance.
In an email to a user’s query, the company stated that it would initiate a full refund of wallet balances within three months if the service does not resume during this period. “We have decided to temporarily close bookings on the BluSmart app. While we strive to be back soon to serve you with the same warmth and smile, we will initiate a refund within the next 90 days if services do not resume before then,” the company said.
Sebi alleges ₹262 crore diverted from EV loans
Sebi has alleged that nearly ₹262 crore—part of the ₹978 crore in loans provided to Gensol by the state-run Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC)—was misused. The funds were intended for the purchase of 6,400 electric vehicles (EVs) to be leased to BluSmart, but only 4,704 EVs were acquired. Sebi claims that instead of being used to procure EVs, the funds were funnelled through Go-Auto Pvt Ltd, Gensol’s EV supplier, and redirected to entities controlled by the Jaggi brothers.