BluSmart, India’s leading all-electric ride-hailing service, has reportedly appointed global consultancy Grant Thornton to carry out a forensic audit, according to sources cited by Reuters. The decision follows a regulatory order from SEBI accusing co-founder Anmol Jaggi of diverting funds intended for electric vehicle purchases for personal use.
The startup, which operates a fleet of over 8,000 EV taxis across Delhi, Mumbai, and Bengaluru, recently had to halt its services after SEBI barred Jaggi from accessing the securities market. The market regulator claims that Jaggi misused funds from Gensol Engineering, a listed company he heads and a key supplier to BluSmart, to acquire luxury items—including a $5 million apartment and a $30,000 golf set.
In response, BluSmart’s board has tasked Grant Thornton with investigating the company’s financial records, focusing on cash flow and fund allocation to assess whether fraudulent activities occurred. One source noted that BluSmart’s financial situation is particularly concerning.
While neither BluSmart nor Grant Thornton have commented publicly, SEBI’s probe into Gensol earlier revealed major lapses in internal financial controls. It alleged that approximately $78 million in loans were funneled through convoluted channels for non-business use.
Gensol, which supplies EVs to BluSmart via leasing arrangements, has stated its intent to comply with SEBI’s forensic audit directive. Since the start of the year, its stock has dropped nearly 90%. Meanwhile, BP Ventures, a major BluSmart investor and the venture arm of British energy giant BP, has yet to issue a statement on the matter.
