BluSmart, which is an electric cab-hailing platform, remained non-operational on Thursday across Delhi-NCR, Bengaluru, and Mumbai, as , market regulator Sebi cracked down on its co-founder over alleged misuse of funds at an affiliated company.
BluSmart app, which offered more than 8,000 taxis in the three metros, stopped taking bookings on Wednesday evening and remained unoperational on Thursday as well. The sudden suspension puts the livelihood of thousands of drivers at risk and has led to customers venting out their frustration on social media. "We've decided to temporarily close bookings on the BluSmart app," the firm said in an email to customers without giving any reasons.
"I have almost 20K balance in BluSmart and today morning got this mail that BluSmart services are suspended. What is this???When can get the refund of BluSmart is getting closed," said a customer in a post on X on Wednesday and attached the screenshot of the company's e-mail. BluSmart in the e-mail assured to initiate a refund to customers within 90 days.
"We truly appreciate your support. While we strive to be back soon, we will initiate a refund within 90 days if services do not resume before that," the e-mail said as reported by news agency PTI.
Another customer wrote on X: "I loved BluSmart. More than the money in the wallet, I am more concerned about driver partners who will be out of job until the saga plays out..." Meanwhile, Delhi Airport on Tuesday evening issued a passenger advisory, stating that "BluSmart has temporarily suspended its operations at Delhi Airport".
Sindhuja Kashyap, Partner, King Stubb & Kasiva, Advocates and Attorneys said that the suspension of BluSmart’s services in Delhi and SEBI’s probe into alleged financial misconduct have raised concerns for customers with funds in Blu Wallet, particularly given clause 10.8.2 in BluSmart’s Terms and Conditions, which deems wallet funds “strictly non-refundable” with no expiry date.
"However, Indian law prioritizes consumer protection and regulatory compliance over restrictive contractual terms, providing customers with viable recourse." "Courts in India have consistently struck down such clauses as unfair under the Consumer Protection Act, 2019, which prohibits terms that limit consumer rights or impose unreasonable conditions," added Sindhuja Kashyap.
"Customers can assert their right to refunds by contacting BluSmart’s support, as advised in recent reports, and documenting their wallet balances (e.g., via screenshots)." "If BluSmart denies refunds citing clause 10.8.2, customers can escalate the matter to the RBI’s Ombudsman Scheme for Digital Transactions, a free and accessible redressal mechanism." "Additionally, the Consumer Protection Act empowers customers to file complaints with District Consumer Disputes Redressal Commissions, seeking refunds, interest, or compensation for losses due to unfair trade practices or service failure," Sindhuja Kashyap further said.
Also, users can raise their request for a refund through the BluSmart app by following these steps:
Open the BluSmart app.
Press the menu icon located in the upper-left corner to access the Help section.
From the list of topics for assistance, choose Blu Wallet.
Users can find answers to frequently asked questions (FAQs) regarding the amount in Blu Wallet and refund in this section, but there isn’t an option to ask for a refund or contact the support staff. Then tap the thumbs-down icon on the “Does this resolve your issue?” tab to get in touch with a support agent.
After that, you can get in touch with the BluSmart customer service department and ask for a reimbursement.
*With Agency Inputs
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