News Summary

India’s market regulator has launched an investigation into Gensol Engineering for the alleged misuse of electric vehicle loans. BluSmart, a ride-hailing startup co-founded by Gensol’s founders and positioned as an emerging Uber rival in South Asia, is also implicated in the probe. The Securities and Exchange Board of India (SEBI) has barred Gensol’s founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from holding key positions in the company and engaging in the securities market during the investigation. The interim order accuses the Jaggi brothers of redirecting loan funds for personal use, including purchasing luxury real estate. Gensol secured loans amounting to 9.78 billion Indian rupees for acquiring EVs for BluSmart, but discrepancies in the number of vehicles purchased and the use of funds have raised concerns. BluSmart, facing financial difficulties, has ceased operations in Dubai and is exploring strategies to sustain its business in India. The startup, which began as an Uber fleet operator in 2018, has raised over $486 million in funding but is now grappling with cash flow challenges and a lack of external capital.