Gensol promoters quit board; BluSmart begins shutting operations

Gensol Engineering promoters, brothers Anmol and Puneet Singh Jaggi, have resigned from their directorial roles at the Ahmedabad-based solar EPC company, after an interim order from the markets regulator barred them from the securities market over alleged financial misconduct.

“In compliance with Sebi’s directions in the interim order,” the duo has been “restrained from holding the position of a director or a key managerial personnel in Gensol until further orders,” said the company in a regulatory filing on Wednesday. “They are no longer participating in the management of the company, as per Sebi’s instructions, effective immediately.”

Meanwhile, in a double whammy for Anmol Jaggi, ride-hailing platform BluSmart, which he cofounded, has started suspending operations, with many users unable to book cabs on its app on Wednesday. BluSmart’s recent attempt to raise $50 million had failed, partly due to the spillover impact of Gensol troubles.

Sebi will appoint a forensic auditor to examine the books of Gensol and its related entities.

‘Personal Piggy Bank’

The company, in its filing, said it will fully cooperate, and will provide “complete access to records and information to ensure a transparent and comprehensive audit process.”

Sebi’s order pointed to a “complete breakdown” of corporate governance at the renewable energy and electric vehicle firm.

The regulator accused the promoters of treating the listed company like a “personal piggy bank,” diverting funds for luxury purchases, including a high-end apartment in Gurgaon’s DLF Camellias and a Rs 26-lakh golf set.

On Wednesday, Gensol Engineering's shares closed 5% down to hit the lower circuit at Rs 123.65 on the BSE.

End Trip

BluSmart has started suspending cab operations in certain areas of Delhi-NCR, Bengaluru and Mumbai, ET has learnt. Users reported not being able to book cabs from Delhi Airport and certain areas of New Delhi and Gurgaon.

ET was the first to reporton April 14 that BluSmart was planning to stop its ride-hailing business and transition its vehicles to rival platform Uber.

BluSmart did not comment on its services being suspended.

In an advisory to passengers, Delhi International Airport said, “Please note, BluSmart has temporarily suspended its operations at Delhi Airport. However, there are adequate cab and taxi services available...”

ET had also reported earlier that BluSmart’s operations had become truncated in the backdrop of the crisis surrounding Gensol Engineering. As of early this month, the company was operating only about half of the 25,000-30,000 daily rides it was doing at its peak last year.

The platform has been burning through over Rs 20 crore every month, and is winding down operations following its failed attempt to raise funds.