The Securities and Exchange Board of India (SEBI) has issued an interim order against founders of the electric vehicle taxi booking service BluSmart, for committing financial irregularities in another company it owns, Gensol Engineering.
Brothers Anmol Singh Jaggi and Puneet Singh Jaggi co-founded BluSmart and then co-founded Gensol. The SEBI observed that they had committed multiple violations, including misuse and diversion of funds.
The SEBI has banned the Jaggi brothers from accessing the securities market and holding a director’s post or any other key managerial position at Gensol.
Gensol is an Ahmedabad-based solar energy company at which the Jaggi brothers held key managerial positions. The SEBI found serious issues with how the brothers managed company funds and the order said the pair used the money for personal luxury expenses, treating Gensol “like a piggybank”, leading to investor losses. A forensic auditor would soon be appointed to examine the accounts of Gensol and its related parties, which includes BluSmart.
This has led to an operational halt on the popular EV taxi booking service in three cities in India, as Gensol is expected to procure and lease BluSmart’s electric vehicles.
