BluSmart: Electric Cab Service Halts Amid Fund Misuse Allegations

Indian electric cab service BluSmart suspended operations amid allegations against its co-founder for fund misuse. The halt threatens the livelihood of thousands of drivers, offering services in key cities against rivals like Uber. The market regulator is investigating, and refunds are promised if operations do not resume in 90 days.

BluSmart, an emerging competitor to Uber in the electric taxi space in India, has halted services suddenly. This move follows allegations from India's market regulator that co-founder Anmol Jaggi misused funds intended for the company's electric vehicles to purchase personal luxury items, including a high-end apartment.

The suspension affects thousands of drivers who rely on BluSmart for their livelihood. Customers anxious about their funds in BluSmart wallets have been assured of refunds if the service doesn't resume within three months. Despite its popularity, especially for clean and reliable airport rides, BluSmart's services are now in question.

The market regulator's investigation revealed poor corporate governance and fund diversion at Gensol, a connected entity. Anmol Jaggi faces serious allegations for the improper use of company funds, which has affected Gensol's stock significantly. The company states it will adhere to the regulatory body's directives.

(With inputs from agencies.)