Blusmart EV Scam: India’s Biggest Electric Mobility Fraud Exposed

In a stunning revelation that has shaken India’s electric mobility dreams, Blusmart Mobility, once hailed as a pioneer in the EV ride-hailing sector, is now under fire for what is being called the Blusmart EV Scam. Backed by major government loans and celebrated for its green initiatives, Blusmart’s reputation has crumbled under the weight of financial misconduct, operational failures, and shocking driver exploitation cases.

The Rise of Blusmart: Hope for Green Mobility

Launched in 2019 by Anmol Singh Jaggi, Punit Goyal, and Puneet Jaggi, Blusmart entered the Indian market with a mission to create a sustainable, all-electric ride-hailing service.
With nearly 6,000 EVs and 4,000+ charging points across Delhi NCR and Bengaluru, the company claimed over 12 million rides and a massive reduction in CO₂ emissions.

Partnerships with Tata Power and huge financial support from organizations like IREDA and PFC, totaling over ₹978 crores, positioned Blusmart as a leader in the EV revolution. Investors and customers alike were drawn to its zero-emissions promise and eco-friendly image.

The Fall: How the Blusmart EV Scam Unfolded

The facade began to crack when SEBI (Securities and Exchange Board of India) launched a probe into Blusmart’s financial dealings. The findings were alarming:

• Diversion of ₹200 crore loan funds by Blusmart co-founders through Gensol Engineering, their associated company.
• Misuse of government loans meant for EV purchases to benefit personal or unrelated business interests.
• Fabrication of documents to secure large loans and mislead credit rating agencies.

The Enforcement Directorate (ED) soon joined the investigation. In a dramatic move, Puneet Jaggi was detained under the Foreign Exchange Management Act (FEMA) after raids on Blusmart and Gensol offices.

The Blusmart EV Scam wasn’t just financial — it was deeply systemic, involving fake records, undisclosed related-party transactions, and a web of shell companies.

Service Suspension and Customer Fallout

As the scam details surfaced, Blusmart abruptly shut down ride-booking services in Delhi NCR, Mumbai, and Bengaluru.
Customers faced cancellations without notice and were promised refunds within 90 days — a move that further damaged trust.

The mass resignation of key board members, including independent directors citing “severe governance concerns,” highlighted the internal collapse of the company’s management.

Driver Exploitation: A Hidden Crisis

Behind Blusmart’s green marketing campaigns was a harsh reality for its drivers:

• Penalty deductions for even minor customer complaints.
• Inadequate earnings compared to promises made during onboarding.
• No job security, health insurance, or proper grievance redressal systems.
• Emergency leaves denied and heavy fines imposed for delays or unavoidable issues.

In some cases, drivers claimed that Blusmart’s policies led to losses instead of earnings, making their situation worse than traditional ride-hailing jobs.

Passenger Safety Lapses

Adding to the growing list of concerns, a Blusmart driver in Gurugram was arrested after robbing a female passenger at gunpoint.
This horrifying incident exposed glaring loopholes in Blusmart’s driver verification and safety protocols, tarnishing its already fragile public image.

What Went Wrong: Key Lessons from the Blusmart EV Scam

1. Lack of Transparency: Blusmart’s financial structure was deliberately opaque, allowing misuse of investor and government funds.
2. Corporate Governance Failure: No independent checks or ethical oversight allowed founders to act unchecked.
3. Exploitation of Green Hype: The EV movement’s popularity was misused to raise funds without proper accountability.
4. Worker Rights Ignored: Blusmart marketed sustainability while ignoring the basic rights and needs of its drivers.
5. Public Trust Broken: Operational shutdowns and refund delays destroyed years of goodwill within days.

Conclusion

The Blusmart EV Scam is a harsh wake-up call for India’s fast-growing electric mobility sector.
It shows that sustainability without accountability is a dangerous path.
As India dreams of a greener future, companies must be held to higher standards of governance, ethics, and transparency.

Blusmart’s collapse isn’t just about one company — it’s a reminder that trust and truth are the real engines behind any revolution.