Electric ride-hailing co BluSmart halts cab bookings amid Gensol crisis

Sources also confirmed that the Uber and BluSmart deal is being re-evaluated

Electric ride-hailing firm BluSmart on Wednesday halted cab bookings in certain parts of Delhi-NCR, Bengaluru, and Mumbai, the three cities where it operates. Even as the BluSmart application (app) is available to download on the Google Play Store, users are unable to select time slots in order to complete the ride-booking process.

 

Sources also confirmed that the Uber-BluSmart deal is being re-evaluated. BluSmart is a subsidiary firm of Gensol Engineering.

 

The development comes a day after the Securities and Exchange Board of India (Sebi) barred the promoters and directors of Gensol Engineering — Anmol Singh Jaggi and Puneet Singh Jaggi — from accessing the securities markets allegedly for fraudulent practices and funds diversion. The market regulator also restricted the duo from holding any key positions at any listed firm.

   

In an interim order on Tuesday, Sebi whole-time member Ashwani Bhatia said, “The promoters were running a listed public company as if it were a proprietary firm. The company’s funds were routed to related parties and used for unconnected expenses, as if the company’s funds were promoters’ piggy bank.”

 

According to Sebi, the promoters diverted large sums of money for personal luxuries, including purchase of an apartment at The Camellias in DLF Gurgaon, a high-end golf set, and for making personal credit card payments.

 

Gensol Engineering had taken term loans from two government-backed lenders — the Indian Renewable Energy Development Agency (Ireda), and the Power Finance Corporation (PFC). Out of the total loan amount, the company had earmarked ₹663.89 crore for the procurement of 6,400 electric vehicles (EVs) to be deployed at BluSmart. However, there was a mismatch in the usage of the amount. In a reply to the market regulator in February this year, Gensol Engineering admitted that it had only purchased 4,704 EVs, falling short of its initial target.

 

BluSmart didn’t respond to related queries till the time of going to press.

 

This newspaper had earlier reported that amidst the financial crisis, BluSmart is looking to go for a hybrid model of operations wherein its services would be available on its own app as well as on the app of cab-hailing platform Uber.

 

The share price of Gensol Engineering dropped 5 per cent to ₹122.68 on Wednesday. On a year-to-date basis, the company’s stock fell 86.8 per cent. 

BluSmart blues

> BluSmart cab booking halted in parts of Delhi-NCR, Bengaluru, and Mumbai

> App still available on Play Store, but users unable to get time slots 

> The development comes a day after Sebi barred the promoters and directors of Gensol Engineering — parent firm of BluSmart — from accessing the securities markets

> Uber-BluSmart deal is also being re-evaluated

 

Gensol shares slip 5% to hit three-year low

  Shares of Gensol Engineering slipped 5 per cent on Wednesday to hit their lowest level in three years. Gensol Engineering ended at ₹123.6 per share a day after the market regulator Securities and Exchange Board of India barred its promoters from the securities market allegedly for diversion of funds and fraudulent practices. The stock has declined 84 per cent so far this year and has hit its lower trading limit in 23 out of the last 29 sessions.