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What Is BluSmart scam? How EV startup became a fraud allegation case

What is BluSmart Scam? An exposé on how BluSmart, an electric vehicle startup, allegedly misused government loans, diverted taxpayer money, and funneled funds into personal luxury, despite claiming to promote clean energy and reduce emissions.

By Ground Report Desk
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What Is BluSmart scam? How EV startup became a fraud allegation case

Photo credit: @INCKerala/X

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On April 17, a tweet from Congress Kerala’s official handle lit a fire under India’s electric mobility dreams. The post wasn’t just a warning—it was a detailed exposé. A sharp, stinging accusation that pulled the curtain back on one of the largest alleged frauds in the country’s EV space. The tweet called it a “Massive EV Mobility Scam Using Taxpayers’ Money!” and named names—BluSmart Mobility, Gensol Engineering, and their founders, Anmol Singh Jaggi and Puneet Singh Jaggi.

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But this story doesn’t begin on social media. In a luxury apartment complex in Gurgaon, two brothers sat at the top of a startup empire. From outside, they were clean energy entrepreneurs.

They had raised thousands of crores. Their company, BluSmart, claimed to be fixing Delhi’s pollution with zero-emission taxis. Their faces were in interviews, on panels, at startup awards. Anmol Singh Jaggi and Puneet Singh Jaggi were the poster boys of India’s green startup revolution.

Inside, they were wiring crores into personal accounts.

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They were buying real estate, investing in side ventures, moving funds through a maze of shell companies. At one point, they even used public funds to pay a five-crore advance on a flat in DLF Camellias, one of the most expensive luxury properties in India.

Where did the money come from? Government loans. Subsidies. Public banks. All in the name of promoting electric mobility. This is the story of how a startup sold the dream of clean transportation and used it to funnel taxpayer money into private wealth.

What is Blusmart scam?

BluSmart, an Indian electric taxi service, has faced significant controversies.

In December 2024, a BluSmart driver in Gurugram robbed a woman and her child at gunpoint. He forced her to transfer ₹55,000 via UPI before fleeing with her belongings. The driver was arrested within 24 hours. BluSmart apologized and pledged to enhance safety protocols.

In April 2025, BluSmart suspended operations after allegations that co-founder Anmol Jaggi misused funds from affiliate Gensol. He allegedly diverted money meant for electric vehicle procurement to personal expenses, including a $5 million luxury apartment. The Securities and Exchange Board of India (SEBI) barred him and his brother from the stock market and launched a forensic investigation into Gensol

Scam begins: EVs, loans, and missing cars

The Congress thread alleged that the electric vehicle (EV) policies pushed by the Indian government are nothing more than public-funded subsidies dressed up as environmental reform.

It called out BluSmart Mobility—a company operating around 8,000 electric cabs in Delhi-NCR and Bengaluru—as a key player in a fraudulent ecosystem designed not to reduce emissions but to channel public money into private pockets. 

The thread named founders Anmol Singh Jaggi and Puneet Singh Jaggi, who also run Gensol Engineering, the leasing firm behind BluSmart’s fleet.

While the Congress post was political in tone, the details in the thread found validation in an interim order issued by the Securities and Exchange Board of India (SEBI). The order confirmed what many feared: public institutions loaned out massive amounts of money to these firms under the promise of electric mobility—and a large part of that money is now missing.

Gensol Engineering received ₹830 crore in loans from state-backed entities like the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) between 2021 and 2024. These funds were approved to buy 6,400 electric vehicles, which would then be leased to BluSmart.

But by February 2025, only 4,704 vehicles had been purchased, and the total spend was ₹568 crore. That leaves ₹262 crore unaccounted for. According to SEBI, this shortfall was not a clerical error. The money was funneled through multiple shell firms and ended up in private investments, luxury purchases, and real estate.

Jaggi brothers funneled loans into luxury

The Congress tweet further alleged that the scam was structured like a web of companies, all based in Ahmedabad, where the Jaggi brothers are from. These firms moved money across entities in transactions that mirrored the tactics used by known tax evaders. SEBI’s probe supports this.

It found that nearly ₹43 crore from Gensol’s loan account was used to purchase a 7,400 sq. ft. apartment in DLF Camellias, Gurugram—one of the most expensive real estate projects in India. The property was bought in the name of a firm where the Jaggis and their relatives were designated partners.

More details from the investigation show just how blatant the misuse of funds was. A ₹5 crore advance for the flat was paid from an account linked to Jasminder Kaur, the mother of Anmol Jaggi. That money originally came from Gensol.

When the advance was refunded by DLF, the amount did not go back to Gensol. It was transferred instead to Matrix Gas and Renewables Ltd., another firm controlled by the family.

That wasn’t all. The SEBI order revealed a series of other transactions:

  • ₹6.2 crore was transferred to the Jaggis' mother.

  • ₹2.99 crore went to Anmol Jaggi’s wife.

  • ₹1.86 crore was used for foreign currency.

  • ₹50 lakh was invested in Ashneer Grover’s startup Third Unicorn Pvt Ltd.

  • ₹1.35 crore went to a lithium-ion battery recycling startup, BatX Energies.

  • ₹26 lakh was spent on a custom-made golf set from TaylorMade in the US.

  • Smaller amounts were used for jewelry, online travel bookings, and luxury apartment installments.

These were not business expenses. These were lifestyle upgrades—funded by loans sanctioned in the name of fighting climate change.

Even more disturbing is the claim that Gensol manipulated market expectations. The firm announced that it had received pre-orders for 30,000 electric vehicles during the Bharat Mobility Global Expo in January 2025.

But these orders turned out to be non-binding memorandums of understanding—there were no prices, no delivery timelines, and no enforceable contracts. When SEBI visited Gensol’s Pune plant to verify production activity, they found only three employees on site and no active vehicle manufacturing.

BluSmart app goes dark for users

Meanwhile, BluSmart’s app still exists on the Play Store, but users can’t book rides anymore. There are no available dates or time slots. The service, for all practical purposes, has been suspended. While there is talk that BluSmart may try to pivot and act as a fleet provider for Uber, its core operations are no longer functional.

The Congress tweet didn’t just name names; it questioned the system itself. It pointed out that while the government gives subsidies of more than ₹5 crore to luxury electric vehicles like the Rolls Royce EV, it charges 18% GST on popcorn and residential maintenance bills.

This comparison was intended to highlight the skewed priorities of the state—taxing everyday citizens while subsidizing luxury vehicles.

Public trust in India’s startup ecosystem, already shaken by cases like Byju’s, is likely to take another hit. Investors poured ₹4,133 crore into BluSmart, including large venture capital firms and even public money—₹645 crore of it came from Power Finance Corporation. With Gensol under investigation and its stock down by over 80% since January, the future of these investments looks bleak.

SEBI has barred the Jaggi brothers from accessing the securities market. Gensol’s stock price has crashed, hitting the lower circuit and losing half its value in a month. Analysts expect further scrutiny and possibly criminal charges in the weeks ahead.

At its core, this is not just a story about two founders misusing funds. It is a story about how public policy can be exploited when oversight is weak and accountability is absent. It is a reminder that schemes, no matter how noble they appear on paper, are only as good as the people who execute them.

The Congress thread ends with a blunt question: Is this drive for green energy truly about saving the planet, or is it a scheme to funnel money to a select few? That question now hangs over the entire EV sector—and over every taxpayer who helped fund it.

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Ground Report Desk
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