• Source:JND
Add as a preferred

All-electric ride-hailing startup BluSmart is back in the spotlight for all the wrong reasons. In a bizarre twist, a post from the company’s verified X account accused its own founders of fraud and warned customers not to expect refunds — throwing both employees and users into confusion.

The Post That Went Viral

The viral message appeared on BluSmart’s official X handle on Friday. It claimed the company had been “shut since February 2025” and that employees had gone unpaid for four months. The post bluntly read:

“Everyone, BluSmart company has been shut since Feb 2025. Founders have done the fraud. Do not expect any refund of your wallet money. Even the employees have also not got their 4 months salary. No point messaging on social media.”

ALSO READ: Vivo's OriginOS 6 Update Mirrors Apple iOS 26 With Liquid Glass-Inspired Look

The unusually direct tone — rare for an official brand account — immediately set off a wave of speculation. Was it a hacked account? A whistleblower inside the company? Or a frustrated employee airing grievances?

Within hours, the post went viral, with users flooding the comments section. Some mocked the chaos, with one user writing, “Intern still had the creds and took revenge,” while another quipped, “Please update the bio to: Fraud. Zero refund. Always.”

Whether genuine or not, the post has reignited focus on BluSmart’s ongoing financial and legal troubles.

Financial Troubles Deepen

Timing could not have been worse for BluSmart. Early this year, the National Company Law Tribunal in Ahmedabad accepted an insolvency petition filed by Catalyst Trusteeship--one of BluSmart's financial creditors--against them due to an outstanding dues of Rs1.28 crore that went unpaid.

After receiving its order, the tribunal initiated a corporate insolvency resolution process (CIRP), and appointed NPV Insolvency Professionals Pvt Ltd as BluSmart's Interim Resolution Professional (IRP).

Once hailed as a key player in India’s push for EV-based urban mobility, BluSmart’s downfall has been steep. Mounting debts, liquidity constraints, and stalled investor confidence have all but crippled operations.

Adding to the company’s woes, its key shareholder Gensol Engineering and subsidiary Gensol EV Lease are also facing insolvency proceedings.

SEBI Probe and Founder Allegations

The Securities and Exchange Board of India (SEBI) is currently investigating BluSmart’s co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi, for alleged fund diversion.

According to reports, the brothers are accused of misusing company loans for personal purchases — including high-end real estate and luxury goods — and allegedly manipulating Gensol’s stock prices.

In February 2025, SEBI barred Anmol Singh Jaggi from participating in the securities market, a decision that reportedly preceded BluSmart’s operational shutdown.

Since then, the NCLT has imposed a moratorium on recovery actions and asset transfers, effectively freezing the company’s financial movements until the insolvency process concludes.

What Happens to Users’ Wallet Money?

One major concern now comes from BluSmart’s customers, many of whom still have unused balances in their in-app wallets. Legal experts suggest that refunds, if any, could depend on whether BluSmart’s Prepaid Payment Instrument (PPI) licence remains valid and how the insolvency resolution process unfolds.

Until then, users might have little recourse — especially if the viral post’s claims about refunds turn out to be true.

ALSO READ: PS6 Could Be Just A 'Few Years Away': This Is What Sony Has To Say About Future Of Consoles

The Bigger Picture

BluSmart's demise illustrates the fragility of India's electric vehicle startup ecosystem, where high capital costs, weak cash flow and overzealous scaling often result in financial distress for startups like it.

What once looked like an attractive alternative to ride-hailing giants Ola and Uber has now turned into an unfavorable story. A company once touted for promoting sustainable mobility is now facing accusations of fraud, mismanagement, unpaid wages and social media channels going rogue - while its official accounts appear untrustworthy.

For now, BluSmart’s fate lies in the hands of the insolvency professionals and regulators. But the damage to its brand — and to public trust — may be far harder to fix.