Gensol Engineering promoters Anmol Singh Jaggi and Puneet Singh Jaggi stepped down on Tuesday after the Securities and Exchange Board of India(SEBI) prohibited them from participating in the securities market following a significant loan fraud. SEBI’s interim order alleges that the brothers misused part of the Rs 978 crore originally meant for acquiring electric vehicles to fund personal luxuries including a DLF Camellias apartment and a Rs 26 lakh golf set. As per the NDTV report the regulator accused the Jaggi brothers of using Gensol as a piggy bank siphoning off company funds through a complex network of related entities. The action followed a complaint filed in June 2024. This scandal has also affected their other venture BluSmart India’s first all-electric cab service which has suddenly suspended operations in Delhi Mumbai and Bengaluru. According to his LinkedIn profile Anmol Singh Jaggi pursued his B.Tech Applied Petroleum Engineering from the University of Petroleum & Energy Studies between 2003 and 2007. Later he founded his own venture Gensol Engineering. In 2019 he went on to launch BluSmart India’s first all-electric cab service. BluSmart is Indias first and leading all-electric ride-hailing mobility service. We are here for a reason. We are on a mission to steer urban India towards a sustainable means of transportation and to provide them efficient affordable intelligent safe and reliable mobility reads the statement on LinkedIn. However on Thursday Electric cab-hailing platform BluSmart remained non-operational across Delhi-NCR Bengaluru and Mumbai as the market regulator cracked down on its co-founder over alleged misuse of funds at an affiliated company. BluSmart app that offered more than 8000 taxis in the three metros stopped taking bookings on Wednesday evening and remained unoperational on Thursday as well. The sudden suspension puts the livelihood of thousands of drivers at risk and has led to customers venting out their frustration on social media. The company backed by BP Ventures - an arm of the global energy giant BP - did not immediately offer any comments on the issue. Weve decided to temporarily close bookings on the BluSmart app the firm said in an email to customers without giving any reasons reported news agency PTI. Earlier this week SEBI banned brothers Anmol and Puneet Jaggi from the stock market and ordered a forensic investigation into their listed renewable energy company Gensol. The investigation focuses on allegations that they used funds intended for procuring electric vehicles to purchase luxury apartments. I have almost 20K balance in BluSmart and today morning got this mail that BluSmart services are suspended. What is this???When can get the refund of BluSmart is getting closed said a customer in a post on X on Wednesday and attached the screenshot of the companys e-mail. BluSmart in the e-mail assured to initiate a refund to customers within 90 days. We truly appreciate your support. While we strive to be back soon we will initiate a refund within 90 days if services do not resume before that the e-mail said. Another customer wrote on X: I loved BluSmart. More than the money in the wallet I am more concerned about driver partners who will be out of job until the saga plays out... Meanwhile Delhi Airport on Tuesday evening issued a passenger advisory stating that BluSmart has temporarily suspended its operations at Delhi Airport. Apart from providing services in the three Indian cities BluSmart also offers premium all-electric limousine services in the UAE which it launched last June. The company as on January 9 had a fleet of over 8500 electric vehicles and a charging network of 5800 stations across 50 hubs in Delhi-NCR and Bengaluru and was supported by 10000-plus active driver partners. Sebi on Tuesday barred Gensol engineering and promoters -- Anmol Singh Jaggi and Puneet Singh Jaggi -- from the securities markets till further orders in a fund diversion and governance lapses case. The regulator has also debarred Anmol and Puneet Singh Jaggi from holding the position of a director or key managerial personnel in Gensol until further orders. Further the markets watchdog directed Gensol Engineering Ltd (GEL) to put on hold the stock split announced by it. The order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter. According to Sebis order Gensol Engineering secured a total of Rs 977.75 crore in loans from IREDA and PFC of which Rs 663.89 crore was meant specifically for the purchase of 6400 electric vehicles (EVs). EVs were procured by the company and subsequently leased to BluSmart a related party. However in a response submitted to Sebi in February Gensol admitted that it had procured only 4704 EVs till date -- far less than 6400 for which it had received funding. This was corroborated by Go-Auto Private Limited the EV supplier which confirmed delivering 4704 units to the company for a total consideration of Rs 567.73 crore. Given that Gensol was also required to provide an additional 20 per cent equity contribution the total expected outlay for the EVs was around Rs 829.86 crore. By that calculation Rs 262.13 crore remains unaccounted for. According to a 2023 report by DNA Anmol Singh Jaggi’s ride-hailing startup BluSmart isnt just backed by Tata Motors — Mukesh Ambani is also an investor.