Eversource Capital Eyes BluSmart Acquisition for Rs 850 Crore Amid Fraud Scandal: Founders Expected to Resign

In a significant move within the electric vehicle sector, Eversource Capital is reportedly engaging in advanced negotiations to acquire BluSmart, with the deal estimated at around Rs 850 crore. As highlighted in a recent report by CNBC-TV18, this investment firm has made a non-binding offer and is anticipated to finalize the agreement within the coming fortnight.

Potential Changes in Leadership

If the acquisition proceeds, it’s likely that BluSmart’s founders, Anmol Jaggi and Puneet Singh Jaggi, will be asked to resign from their roles. This shift could mark a new chapter for the company as it seeks to navigate its challenges and capitalize on new opportunities.

Notable Investors

BluSmart has garnered attention from various high-profile investors during its funding phases. Noteworthy backers include cricket icon MS Dhoni, Bollywood actress Deepika Padukone, and Renew Power’s Sumant Sinha. The company’s investment roster also features BP Ventures and Panthera, illustrating its appeal in the evolving EV market.

Financial Controversies

The discussions regarding the acquisition come amid serious allegations of financial misconduct linked to BluSmart’s parent company, Gensol Engineering. A recent report from the Securities and Exchange Board of India (SEBI) has raised concerns about the misappropriation of funds from a Rs 900 crore loan intended for the procurement of electric vehicles.

Key Allegations:
- Only 4,704 out of 6,400 promised EVs were delivered.
- Allegations of Rs 262 crore being misused to acquire a luxury apartment in DLF Camellias, Gurugram.
- Additional funds reportedly funneled through Wellray Solar Industries, a firm associated with a former employee, highlighting potential personal financial irregularities involving the Jaggi brothers.

This unfolding situation presents a crucial moment for BluSmart as it grapples with the implications of these allegations while attempting to finalize its acquisition with Eversource Capital. The outcome could shape the future of the electric vehicle landscape in India.