Electric cab-hailing service BluSmart has faced significant operational challenges, with services halted for the second consecutive day. In a recent communication to users, BluSmart offered reassurance regarding the funds in customer wallets, promising refunds within 90 days if operations do not resume.

Service Suspension and Customer Refunds

In an email received by several users, BluSmart confirmed the suspension of its ride-booking feature on the app, stating, “While we aim to resume services shortly, customers can expect a refund within 90 days if we remain inactive.” This message highlights the company’s commitment to customer service during these uncertain times.

• Pre-loaded Wallets: Customers previously needed to load money into their BluSmart wallets to book rides.
• Seamless Transactions: After trips, payments were automatically deducted, streamlining the payment process.

Impact on Drivers and Operations

Before the suspension, BluSmart operated approximately 8,500 taxis across major cities: Delhi NCR, Mumbai, and Bengaluru. The platform also employed around 10,000 drivers, who now face significant uncertainty regarding their livelihoods. On Wednesday evening, the firm stopped ride services in multiple areas, leading to the cancellation of several scheduled trips.

As of now, BluSmart has not addressed inquiries from the media regarding the situation.

Financial Challenges and Regulatory Scrutiny

This operational disruption comes shortly after the Securities and Exchange Board of India (SEBI) imposed a ban on brothers Anmol and Puneet Jaggi, ordering a forensic investigation into their renewable energy company, Gensol Engineering. Allegations suggest that the Jaggi brothers mismanaged corporate funds, using them for personal purchases such as luxury real estate and high-end golf equipment.

• Significant Loans: Gensol secured Rs 977.75 crore in loans from IREDA and PFC, with Rs 663.89 crore specifically allocated for the acquisition of 6,400 electric vehicles (EVs).
• Procurement Issues: However, Gensol has reportedly only acquired 4,704 EVs, falling short of its commitments.

Future Restructuring Plans

In light of these issues, Gensol has pledged to fully cooperate with the ongoing forensic audit. As mandated by SEBI, the Jaggi brothers are no longer involved in company management. Additionally, Arun Menon, an independent director at Gensol, submitted his resignation on Thursday.

The unfolding situation reflects the complex interplay of financial management and operational sustainability in the rapidly evolving electric vehicle sector. As BluSmart navigates these challenges, the fate of its drivers and customers remains uncertain.