India’s Blusmart scanned Gensol’s survey by supporting EV loan abuse

The regulatory authority of the India market launched a survey on Tuesday at Gensol Engineering after finding alleged abuse of electric vehicles. Blusmart, a start -up in Gianol once regarded as an emerging Uber opponent in the South Asia market, has also been scanned in the research.

India’s Securities and Exchange Council (Sebi) prevented the founders of Gensol Engineering, Anmol Singh Jaggi and Puneet Singh Jaggi, by conducting basic positions in the company listed by the Public Company and participating in the securities market while the Agency is investigating. The Jaggi brothers also founded Blusmart Mobility.

Anmol Singh Jaggi told TechCrunch that the company “fully collaborated” with the Indian regulatory authority and “composes all the necessary documents and events to clarify”.

“This is just a temporary step, not a final decision and I am sure that once everything is revised correctly, our position will be clear. I always believed to do things responsible and that will not change,” Jaggi said.

In his temporary order, the regulator accused the Jaggi brothers of redirecting significant amounts of loans for personal use, including the purchase of luxury real estate on the outskirts of the capital of India.

The regulator said Gensol Engineering benefited from loans of 9.78 billion Indian Rupees (about $ 114 million) from the State Indian Renewable Energy Development Service and funding company. Of this, 6,63 billion rupees were set for the purchase of 6,400 EVs to rent in Blusmart. However, the company only acquired 4,704 EVs for 5.68 billion rupees, the regulator in turn (PDF).

“Some of these funds were subsequently used for the purposes that are not related to the purpose/purpose of approved loans, which included (i) the personal expenses of the supporter, including the purchase of high real estate, (ii) benefit of the private entities/transfer of capital.

Gensol previously denied the alleged inability to pay debt payments. However, the regulator reported information from lenders and said there were “multiple cases of default” by the company based in Gujarat.

“The candidates conducted a listed public company as if it were a privately owned business,” the regulator said in the order.

The mandate comes more than a month after the deterioration of credit rating services, raising concerns about delays in the company’s debt service practices and corporate governance practices.

Meanwhile, Blusmart, a Gensol client and the entity that shares its co -founders, is struggling because of the growing burnt cash and the lack of external capital. The start closed his service in Dubai, which began last year and is currently exploring ways to maintain its activities in India, which extends to Delhi-NCR, Bengaluru and Mumbai.

Starting started with a ride was planning to rotate to a fleet partner for Uber’s opponent, Indian Economic Times newspapers referenced Earlier this week, citing people who are familiar with developments.

Founded in late 2018 as Gensol’s mobility, Blusmart started as a Uber fleet operator. However, the start appeared as an opponent of all EVs in Uber after the start of his autonomous activities before the Covid-19 pandemic.

Blusmart raised $ 25 million in January 2024 to boost EV charging stations from capital responsibility. Later that year, the company referred to conversations Increase $ 100 millionBut this funding was never implemented.

Gurugram -based start has increased total funding of more than $ 486 million, per Crunchbase. It counts BP Ventures and the Mayfield India Fund among its first investors.

Last year, Blusmart had a fleet of 6,000 EVs, including about 180 ZS SUVs from MG Motor and the rest of the batch consisting of sedans tata tigor. The start was planning to increase fleet size to 10,000 EVs by the end of the year, but did not reach the target.

Jaggi did not answer which measures they take specifically for Blusmart.

Gensol Engineering’s stock collapsed over 83% this year, the latest 129 rupees just before the market closed on Tuesday.