[AMG Power]

After Byju’s, its another Indian start up Blusmart thats in the news for similar reasons.

According to SEBI, Blusmart’s promoters had taken a loan of over Rs 900 crores from IREDA and PFC for buying of an EV fleet of over 4500 vehicles within their entity Gensol.

However, only about Rs 600 crores were utilised for purchase of EVs, and over Rs 250 crores were not utilized.

Where did that money go? Well, part of it went into buying luxury real estate.

SEBI also reported that they had submitted fraudulent documents to credit rating agencies that all loans were being services on time, hiding defaults.

Many folks confuse “raising capital” as the same as “creating value”.

Blusmart’s case is a reminder that no matter how futuristic your business model sounds — EVs, sustainability, tech — the fundamentals of every business has to be trust and the most underrated trait is integrity.

Source

[bobbyblr]

Green Scam Exposed: SEBI Exposes Gensol’s ₹977 Cr EV Fund Scam

In a scathing interim order dated April 15, the Securities and Exchange Board of India (SEBI) has exposed a major financial scandal at Gensol Engineering Ltd, citing a “complete breakdown of internal controls” and alleging massive fund diversion by the company’s promoters.

According to SEBI, between FY22 and FY24, Gensol raised ₹977.75 crore in term loans from two government-backed lenders — Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) — for the procurement of 6,400 electric vehicles intended for leasing to BluSmart, a related party.

However, only 4,704 EVs worth ₹567.73 crore were delivered, leaving ₹262 crore unaccounted for long after the disbursement of the final loan tranche.

The regulator’s investigation revealed a complex web of transactions that funneled funds from Gensol through supplier Go-Auto to several promoter-linked entities, including Capbridge Ventures LLP, Matrix Gas, and Wellray Solar.

In one striking instance, ₹50 crore was transferred to Capbridge, which then made a ₹42.94 crore payment to DLF Ltd for a luxury apartment in Gurgaon’s The Camellias — a property initially booked by Jasminder Kaur, the mother of Gensol CEO Anmol Singh Jaggi. The advance for this booking also traced back to company funds.

SEBI also flagged personal misuse of funds. Anmol Singh Jaggi allegedly spent company-linked money on high-end personal items — including ₹26 lakh on a golf set, over ₹1.86 crore in foreign currency, and ₹9.95 lakh in credit card payments. His brother, Puneet Singh Jaggi, reportedly used ₹13.5 crore for personal financial transactions, including family transfers and credit card settlements.

Further irregularities included circular fund movements, use of diverted funds to participate in preferential share allotments, and misleading public disclosures regarding order books and business deals.

A SEBI inspection of Gensol’s Chakan EV facility found almost no manufacturing activity underway, contradicting the company’s claims.
In response, SEBI has barred the Jaggi brothers from holding any directorial or key managerial positions at Gensol and prohibited them from trading in securities. The regulator has also frozen the company’s planned stock split, warning it could mislead retail investors in light of the unresolved governance issues.

With a forensic audit underway, Gensol’s green energy narrative has now been eclipsed by serious allegations of financial misconduct and regulatory deception. The company’s future will hinge on the findings of this ongoing investigation.


Source: https://the420.in/green-scam-exposed...-ev-fund-scam/

[PreludeSH]

What prevents promoters to give themselves a huge paycheck even if they don't directly use the money as in this case ?

Venture capitalists might enforce more control over such practices ?

[volkman10]

BluSmart is Gensol. Gensol is BluSmart

The business ties between Gensol Engineering’s Anmol Jaggi and Puneet Jaggi, and BluSmart CEO Punit Goyal are more than skin deep.

But now with Gensol gone, what happens to BluSmart?

BluSmart suspends app-based cab bookings in Delhi-NCR, Bengaluru amid Gensol crisis.

Link:

[ajmat]

Originally Posted by volkman10

]
BluSmart suspends app-based cab bookings in Delhi-NCR, Bengaluru amid Gensol crisis.

Link:

Dont think so, I booked one today for a trip to office

[thanixravindran]

Real questions are - What was the auditor doing? And were there not questions raised by lenders if funds are not utilized? It looks like everybody involved. I am surprised on the SEBI investigation as I thought they typically investigate market manipulation.

[whitewing]

The first default happened the the end of Dec '24, and the CRAs were able to detect this only in March '24 !! Surely there should be a means for the markets to get notified of events on a more timely manner. The system currently banks on the listed company to do the rightful thing :-)



Also, it is strange that PFC/IREDA were hoodwinked into releasing money for purchase of EVs that were not bought. Don't usual hypothecation rules apply for commercial EV lending?

It was noted that out of Rs. 977.75 Crore availed by the Company from IREDA and PFC as term loans, Rs. 663.89 Crore was for purchasing 6,400 Electric Vehicles. As per the submissions made by Gensol, EVs were procured by the Company and subsequently leased to BluSmart, a related party

Link to the report:https://nsearchives.nseindia.com/con.../INVG67564.pdf

[asingh1977]

Originally Posted by ajmat

Dont think so, I booked one today for a trip to office

Not allowing here in Gurgaon. Wallet money needs to be retrieved by calling their call center.

[ajmat]

Originally Posted by asingh1977

Not allowing here in Gurgaon. Wallet money needs to be retrieved by calling their call center.

I must have been one of the last rides. Later that day i was not able to book. Today, I was notified that I would get a refund on my wallet amount within 90 days

[volkman10]

India's BluSmart, rival of Uber, suspends operations after co-founder probed.

> Co-founder of Indian rival to Uber faces regulatory setback
> BluSmart halts operations, drivers stressed
> Investigation finds co-founder misused EV funds, bought luxury home
> Indian electric cab company became popular over years
> The suspension put thousands of its drivers without work overnight.

"We've decided to temporarily close bookings on the BluSmart app," the company said in an e-mail to customers.
Amid concerns expressed on social media about customer funds blocked in BluSmart wallets, the email said the company will only "initiate a refund within the next 90 days if services do not resume before then."

The Delhi Airport on Thursday announced BluSmart's suspension in an advisory.

Source: Reuters

[finneyp]

It is a shame that a home grown startup cab company that provided good & reliable cab service to its customers had to close down because their top leaders mismanaged the funds!

[volkman10]

BluSmart cabs start getting rebranded as Uber Green in Bengaluru.



BluSmart is said to lease some of electric cabs to Uber Green and operate a leaner fleet. An outright acquisition of BluSmart is off the table, for now.

BluSmart, which counts Gensol Engineering Ltd.’s Anmol Singh Jaggi as a co-founder, is in talks with the India arm of Uber Technologies Inc., to lease out 800-1,000 of its EV cabs as Uber Green

The livery on a few BluSmart cabs are being changed to Uber Green at Bengaluru airport.

The drivers have been told to stop accepting rides for three-four days due to an "audit". “Due to vehicle audits, operations will be temporarily halted for the next few days starting tomorrow.

Link:

[notme]

Too many startup guys just want fast money and a baller lifestyle.

https://youtu.be/j53ebmXYUZI

[Pancham]

What a shame! BluSmart service was superb in Delhi NCR. A much needed cab operator given how bad Uber and Ola has become. Good days ahead for Uber and Mr. B Aggarwal.

[anujmishra]

Do not worry friends, few years down the line both "Jaggi" brothers will be acquitted of all charges and he will leave normal life, lots of media attention they will get, will become motivational speaker of business schools and it will continue.

We as people take too much at our heart but these people leads normal and lavish life, always.