BluSmart hires Grant Thornton for forensic audit amid financial scandal

The Securities and Exchange Board of India (SEBI) has barred Anmol and Puneet Singh Jaggi from directorial roles at BluSmart’s parent, Gensol Engineering, and restricted their market access, following allegations of misused funds for the company’s electric vehicle expansion

Beleaguered electric cab service BluSmart has appointed Grant Thornton to conduct a forensic audit of its financial operations, amid allegations of financial misconduct involving its co-founder, Anmol Jaggi. The appointment follows a regulatory investigation into the company’s financial practices and is aimed at addressing mounting concerns over its cash flow and transparency.

According to reports citing sources, the forensic audit will focus on the company’s financial health, specifically investigating the movement and usage of funds within the business. Reports have suggested that BluSmart’s cash position has raised red flags, with the possibility of fraud being a central concern. The decision to hire Grant Thornton underscores BluSmart’s efforts to restore credibility and rebuild trust with investors, regulators, and the public as the company faces increasing scrutiny.

The regulatory investigation was prompted by findings from the Securities and Exchange Board of India (SEBI), which recently barred Anmol Singh Jaggi and his brother Puneet Singh Jaggi from holding directorial positions at Gensol Engineering Limited (GEL), BluSmart’s parent company. SEBI’s interim order also restricts the two brothers from accessing the financial markets. The regulatory body’s actions are tied to allegations that the Jaggi brothers misused funds intended for BluSmart’s expansion into the electric vehicle sector.

Fund misappropriation linked to BluSmart

At the heart of the controversy is a ₹978 crore loan provided by state-backed financial institutions, including the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), which was meant to finance the acquisition of 6,400 electric vehicles. However, SEBI’s investigation uncovered that only 4,704 vehicles were purchased, leaving a ₹262 crore discrepancy in the funds. The missing money is believed to have been diverted for personal expenses, including the purchase of a luxury apartment in Gurgaon.

SEBI’s findings also reveal multiple instances of fund misappropriation, including ₹6 crore transferred by Anmol Jaggi to his mother, ₹2 crore to his wife, and ₹50 lakh to Grover’s Third Unicorn, a company with no clear connection to BluSmart’s operations.

With the forensic audit now underway, BluSmart faces the difficult task of addressing these allegations and proving that it can continue to operate with integrity in an increasingly competitive and regulated market.

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