'Founders have done the fraud': BluSmart’s post on X sparks online frenzy

The viral episode has once again drawn fresh attention to BluSmart’s deepening financial crisis.

In an unusual turn of events, all-electric ride-hailing startup BluSmart made headlines once again after a post from its verified X account accused its founders of fraud and warned customers not to expect refunds.

The post, which appeared on Friday, also claims that employees had gone unpaid for several months, sparking confusion and speculation across social media.

“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,” read the post, which quickly went viral before being widely shared across platforms.

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.

— BluSmart (@BluSmartIndia) October 10, 2025

The unusually candid tone, rare for a company’s official channel, left users divided over whether it was an internal whistleblower revelation or a disgruntled employee’s outburst.

Comments poured in within hours, with one user joking, “Intern still had the creds and took revenge,” while another quipped, “Please reword the bio to: Fraud, zero refund. Always.”

The viral episode has once again drawn fresh attention to BluSmart’s deepening financial crisis.

Earlier this year, the National Company Law Tribunal (NCLT) in Ahmedabad admitted an insolvency plea against the company for defaulting on dues worth around Rs 1.28 crore, filed by Catalyst Trusteeship, a financial creditor. The tribunal, following this, initiated a corporate insolvency resolution process and appointed NPV Insolvency Professionals Pvt Ltd as the Interim Resolution Professional (IRP).

Once considered a frontrunner in India’s EV-based mobility sector, BluSmart’s fortunes have rapidly declined amid mounting liabilities and cash flow shortages. The company’s key shareholder, Gensol Engineering, and its subsidiary, Gensol EV Lease, are also undergoing insolvency proceedings.

SEBI is currently investigating BluSmart’s co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi, for alleged fund diversion. The Jaggi brothers are accused of misusing company loans for personal gains, including purchasing high-end real estate and luxury items, and allegedly manipulating Gensol’s stock prices.

In February, SEBI barred Anmol Singh Jaggi from participating in the securities market, a move that preceded BluSmart’s operational suspension.

The NCLT has since imposed a moratorium on recovery actions and asset transfers. Meanwhile, BluSmart customers have raised concerns over the fate of their in-app wallet balances, with legal experts noting that refunds could hinge on the company’s prepaid payment instrument (PPI) licence and the outcome of insolvency proceedings.