BluSmart Mobility’s dramatic downfall has put its founders, Anmol Singh Jaggi and Puneet Singh Jaggi, at the heart of one of India’s biggest startup
BluSmart Mobility’s dramatic downfall has put its founders, Anmol Singh Jaggi and Puneet Singh Jaggi, at the heart of one of India’s biggest startup controversies this year. What began as a celebrated EV ride-hailing venture promising a cleaner mobility future has spiraled into allegations of financial misconduct, operational collapse and regulatory action.
The crisis intensified when BluSmart’s verified X account posted a blunt message accusing the founders of committing fraud and declaring that the company had effectively shut operations since February 2025. The post also warned customers not to expect refunds, drawing immediate attention from regulators, investors and the public. The language and timing of the message suggest possible internal whistleblowing, though the company has not issued any clarification.
The founders’ troubles began months earlier when the Securities and Exchange Board of India issued an interim order alleging misuse of funds. According to the regulator, capital meant for electric vehicle procurement through their listed company Gensol Engineering was diverted to personal accounts and luxury purchases. The order described weak internal controls and serious governance failures, casting a shadow on both BluSmart and Gensol.
These allegations marked a turning point for the company. Under the leadership of Anmol and Puneet Jaggi, BluSmart had rapidly expanded its EV fleet and positioned itself as a sustainable alternative to conventional ride-hailing. But after the SEBI action, operations across major cities including Delhi NCR, Bengaluru and Mumbai were scaled down. Refunds to users were delayed, employees went unpaid for months, and service partners were left in limbo.
In an attempt to contain the crisis, the founders initiated a forensic audit by Grant Thornton. However, the leadership team came under further pressure when several independent directors at Gensol Engineering resigned, and the Institute of Chartered Accountants of India began reviewing financial statements. In July 2025, the National Company Law Tribunal admitted an insolvency petition against BluSmart, placing the company under corporate insolvency proceedings.
Anmol and Puneet Jaggi, who once symbolized India’s growing EV entrepreneurship, have since maintained silence. Their absence from public communication has only fueled speculation about their legal strategy and the extent of their personal liability. Industry observers believe the case may shape how future startup founders are held accountable for governance and financial transparency.
The allegations against the founders have also shaken investor confidence in India’s EV ecosystem. BluSmart was considered a model for sustainable fleet electrification and had attracted significant funding. The current crisis underscores the risks of rapid scale-up without robust oversight, especially when founders control both operating and financing entities.
Legal experts suggest that the next phase of this case will focus squarely on the founders’ role in fund diversion, regulatory breaches and their responsibility toward employees, customers and creditors. If SEBI’s findings are upheld, they may face severe legal consequences, including disqualification from leadership roles and potential criminal liability.
BluSmart’s rise and fall has become a defining moment for the Indian startup ecosystem. For Anmol and Puneet Jaggi, it marks a sharp reversal from being celebrated founders to facing intense scrutiny and allegations of fraud. The outcome of the ongoing investigations and insolvency proceedings will determine not just the future of BluSmart, but also set a precedent for how India treats founder accountability in high-growth industries.
Image credit : Outlook Money
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