Bluesmart Scam: Another major scam has surfaced in the country. The Jaggi Brothers, promoters of Gensol Engineering, planned to create companies under the pretense of protecting the environment. Using the name “BlueSmart,” they raised public funds and misled investors. Deepika Padukone and MS Dhoni also invested in the company, which later collapsed. Investors lost money, and shares plummeted. As the investigation deepens, more shocking details about the Jaggi Brothers are emerging, revealing fraud worth hundreds of crores.
The Faces Behind the Scam
Anmol Singh Jaggi and Puneet Singh Jaggi, the masterminds behind the scam, once held a reputable image in India’s renewable energy sector. Known as the driving force behind Gensol Engineering and BlueSmart Mobility, the brothers frequently appeared at startup conferences, podcasts, and award shows. Their popularity helped them attract big names like Deepika Padukone, MS Dhoni, Sanjeev Bajaj, and Ashneer Grover as investors.
BlueSmart and the EV Business
They founded BlueSmart Mobility in partnership with Puneet Goyal, offering EV cab services in Delhi-NCR, Bengaluru, and Mumbai. Gensol Engineering—backed by government support—borrowed heavily from institutions like IREDA and PFC to purchase electric vehicles for BlueSmart’s fleet. Though the company borrowed ₹977.75 crore to purchase 6,400 EVs, SEBI’s report revealed they bought only 4,704 vehicles. The rest of the funds went unaccounted for.
Lavish Lifestyle at Investor’s Expense
The Jaggi Brothers used company funds to buy luxury items and properties. They spent ₹42.94 crore on a luxury apartment in DLF’s Camellias, ₹26 lakh on a golf set, and crores more on personal expenses like foreign travel and credit card payments. They even purchased an apartment worth ₹6.2 crore in their mother’s name and moved funds to related companies like Go-Auto Pvt Ltd and Velre Solar Industries Pvt Ltd—where they hold shares.
SEBI’s Crackdown
SEBI stepped in with an interim order on April 15, 2025. The regulator removed the Jaggi Brothers from their directorial roles and barred them from the securities market. SEBI also launched a forensic audit of Gensol’s financial records to investigate the misuse of funds, false loan servicing documents, and fake investor updates.
Deepika Padukone & MS Dhoni: Just Investors
In 2019, Deepika Padukone invested ₹25.62 crore in Gensol. MS Dhoni reportedly invested ₹200 crore. However, there is no evidence suggesting they were involved in the scam. They appear to be victims, like other investors, who trusted the company’s promises.
False Promises and Stock Manipulation
On January 28, 2025, Gensol announced it had received pre-orders for 30,000 EVs. The share price spiked by 15% in two days. However, an on-site inspection revealed that the Pune plant had no actual production happening—only two or three workers and unpaid electricity bills.
Financial Crisis and Company Fallout
Due to the scam, Gensol’s stock crashed by over 50% in just 15 days and may fall as much as 90%. Credit rating agencies like CARE and ICRA downgraded Gensol to a “D” rating, reflecting severe repayment issues. Public shareholding rose to nearly 65%, while promoter shareholding dropped to around 35%. Institutions like IREDA and PFC began selling pledged shares to recover loans.
Impact on BlueSmart and Indian Startups
BlueSmart suspended its services. Users can no longer book rides or withdraw funds from their wallets. Over 10,000 drivers face uncertainty over salary payments. This scandal has shaken trust in the startup ecosystem. It also disrupted Uber’s plans to acquire BlueSmart, leading to a freeze on further EV collaboration.
Systemic Flaws in the Startup Ecosystem
This incident has exposed the cracks in corporate governance within India’s startup space. As a result, government agencies may implement stricter regulations, such as quarterly audits, independent financial reviews, and greater accountability from VCs. Startups relying on public funds will face more scrutiny going forward.
Share
Post Office Time Deposit Benefits: Who Should Invest and Why
Technical Glitch Halts TGRTC Services in Telangana: Check Areas
