Latest news with #BluSmart
India Today
3 days ago
- Automotive
- India Today
Gensol misses May payment for loan on BluSmart cabs: Report
Gensol Engineering, promoted by two of the founders of electric mobility firm BluSmart, has missed a payment of about Rs 4 crore to its pass-through certificate (PTC) holders this month, reported The Economic Times (ET). The last successful repayment was made in April, said people familiar with the matter. Gensol had raised funds by issuing PTCs, which were offered to retail investors on the online platform Grip Invest. PTCs are loans given in exchange for an underlying asset, in this case, vehicles that run on the BluSmart loans were to be repaid using the cash earned by these electric cabs. But after BluSmart shut down its cab services and ongoing talks with Uber and other fleet operators failed to move ahead, repayments became Invest founder Nikhil Aggarwal confirmed the missed payment as quoted in the report. He said Gensol had raised a total of Rs 5.6 crore through the PTCs. So far, 56% of the principal has been repaid, but an amount of Rs 4.04 crore is still loans were secured against 76 electric vehicles. These vehicles are no longer in operation, as BluSmart has stopped its May 29, the Delhi High Court passed a final order, giving possession of these vehicles to the lessor, Vriksh Advisors, a subsidiary of Grip Invest. The court also allowed Vriksh to sell, operate or lease the vehicles. Aggarwal told ET that the vehicles have been inspected and found to be in good said Vriksh Advisors is now working on setting up charging stations and is in talks with fleet operators to re-deploy these vehicles on ride-sharing an industry insider pointed out that even if the vehicles begin running again, the terms of the original PTC agreement may change. He explained that revenues, commissions and pricing would differ on other platforms, and so the repayment plan would also need to be told ET that Vriksh Advisors is trying to find the best buyer or operator for the vehicles, in the hope that proceeds from the lease or sale will help repay the pending loan amounts.'People invested in BluSmart bonds and PTCs because they believed in the cab service, which had a good brand image, and they were also drawn by the high returns,' one investor told to a credit rating report issued by Care Edge Ratings on Tuesday, the bonds were issued in 2023, were due to mature in 2027, and offered a return of 13.6%.ET had earlier reported on April 21 that many BluSmart investors were expecting defaults on the bonds they had purchased through platforms like Yubi and Centricity. BluSmart had issued over Rs 100 crore worth of bonds over the past year. Of this, investors said that more than Rs 80 crore worth of non-convertible debentures (NCDs) are still due for troubles come as Gensol Engineering's promoters, brothers Anmol Singh Jaggi and Puneet Singh Jaggi, are under investigation. They are accused of diverting company funds for personal use. BluSmart has already stopped operations, and Gensol's bank accounts have been frozen following orders from the National Company Law Tribunal (NCLT) in Indian Renewable Energy Development Agency (Ireda), a government-run lender, said last week that it has moved the Debt Recovery Tribunal in Delhi against Gensol Engineering and its arm Gensol EV Lease, over a default of about Rs 729 crore. Ireda had earlier also filed an insolvency case against crisis began after market regulator Sebi launched a probe into Gensol Engineering following a stock manipulation complaint it received in June 2024. Sebi's investigation revealed that the Jaggi brothers had allegedly used loans meant for buying electric vehicles for personal In advertisement
Time of India
3 days ago
- Automotive
- Time of India
Gensol defaults on BluSmart-linked bond repayment for May
Gensol Engineering , promoted by the founders of electric mobility firm BluSmart , has defaulted on payment of around ₹4 crore to its pass-through certificates ( PTCs ) holders this month. The last repayment that was processed successfully was in April, people aware of the matter said. The troubled solar engineering, procurement and construction company had raised these funds by issuing PTCs, which were distributed to retail investors via online platform Grip Invest. PTCs are usually loans that are raised in lieu of any underlying asset. In this case, the company had offered vehicles plied on the BluSmart platform as collateral for these loans. As the vehicles plied and generated revenue, repayments were processed out of that cash flow. Now, as the BluSmart cab service stopped and deal talks with ride hailing platform Uber and fleet operators are yet to come to fruition, the loan repayment has become uncertain. Confirming the development, Grip Invest founder Nikhil Agarwal said that while the total issue size was ₹5.6 crore, 56per cent of the principal amount has been repaid by Gensol and currently the outstanding is ₹4.04 crore. These loans were secured against 76 vehicles that were previously run on the BluSmart platform. On May 29, the Delhi High Court passed a final order and gave Vriksh Advisors, the lessor, the right to operate, sell or lease the assets. 'All vehicles are now in the possession of the lessor. The same have been inspected and found to be in good working order,' Aggarwal told ET. Vriksh Advisors is a subsidiary of Grip Invest. Aggarwal said the company has taken possession of the vehicles, inspected them, created charging facilities and is now in talks with fleet operators looking to deploy these vehicles on ride sharing platforms. A senior industry insider, however, said the repayment structure for PTCs might change even if the vehicles start running. 'Commissions, revenues, pricing and all the other factors would not remain the same across all platforms, so those things will need to be considered before starting the repayment schedule,' he pointed out. Vriksh Advisors is in the process of finding the best suitable buyer of the assets, so they can be used to repay the loans taken against them, people cited above said. 'People invested in BluSmart bonds and PTCs thinking of the cab services, which had a big brand value, and they were also attracted to the high returns offered by these instruments,' said an investor who has exposure to BluSmart bonds. According to a credit rating document issued by Care Edge Ratings on Tuesday, these bonds issued in 2023 were due to mature in 2027 and offered a coupon rate of 13.6per cent . ET had reported on April 21 that BluSmart investors were expecting major defaults on bonds they had purchased via platforms like Yubi, Centricity and others. The ride-hailing company had issued more than ₹100 crore worth of bonds over the last one year. The investor quoted above said that more than ₹80 crore of NCDs are due for repayments from BluSmart. This comes at a time when the Gensol promoters Anmol Singh Jaggi and his brother Puneet Singh Jaggi are under investigation for siphoning off funds from the company for personal consumption. While BluSmart has halted its operations, Gensol's bank accounts have been frozen under directives from the National Company Law Tribunal, Ahmedabad. State-run Indian Renewable Energy Development Agency (Ireda) last week said it has moved the Debts Recovery Tribunal, Delhi, against Gensol Engineering and its arm Gensol EV Lease, claiming a default of about ₹729 crore. Ireda had earlier filed an insolvency petition against Gensol. The entire saga started after market regulator Sebi kicked off an investigation into Gensol Engineering following a stock manipulation complaint it received in June 2024. Its findings showed that the Jaggi brothers diverted loans Gensol took to procure electric vehicles for personal use.
Coin Geek
22-05-2025
- Business
- Coin Geek
RBI scrutinizes select e-wallets after taxi app collapse
Getting your Trinity Audio player ready... The Reserve Bank of India (RBI) is reportedly reviewing certain digital wallets linked to electric vehicle (EV) services following the abrupt shutdown of BluSmart, the country's largest all-electric taxi platform. The collapse left thousands of users unable to retrieve money stored in the app's wallet, prompting concerns over the safety of funds in such closed-loop payment systems, according to a Bloomberg report. These wallets, which can only be used within a single platform, are common across India's expanding digital services sector, particularly in the EV space for tasks like booking rides or accessing charging stations. Unlike open-system wallets under the RBI's direct oversight, closed-loop wallets operate with fewer regulatory safeguards, making users vulnerable during business failures. According to the report, the RBI has begun informal discussions with EV charging operators and other app-based platforms to evaluate consumer protection measures. The central bank may soon convene a formal meeting with stakeholders to explore potential regulatory changes. One proposed measure includes requiring closed-loop wallet providers to place customer funds in escrow accounts—similar to requirements for payment aggregators—to ensure users can recover their money if a company ceases operations. The RBI is also considering applying elements of its Prepaid Payment Instruments (PPI) rules to large-scale closed wallets. A prepaid payment instrument (PPI) is a financial tool that enables users to load funds onto a card or digital wallet for future transactions. In India, PPIs encompass mobile wallets like Paytm, PhonePe, and MobiKwik, as well as payment gateways such as Razorpay. So far, the RBI has permitted PPI users to conduct Unified Payments Interface (UPI) transactions through third-party mobile apps, enhancing the scope of digital payment services in India. This means that users can transfer or receive funds through UPI in their PPI wallet using third-party apps, making it interoperable. BluSmart, once a major rival to Uber in India's ride-hailing market, halted new bookings despite operating the country's largest all-electric fleet of over 8,000 vehicles. Its suspension of services in Delhi, Mumbai, and Bengaluru sparked an online backlash. While some users reportedly said they received wallet refunds, others face a 90-day wait. The crisis deepened after Indian market regulator, the Securities and Exchange Board of India (Sebi), accused co-founders Anmol and Puneet Singh Jaggi of diverting loans meant for vehicle leasing to fund personal luxury purchases. BluSmart's reliance on corporate leasing—mainly through Gensol Engineering Limited, also run by the founders—has further raised concerns over financial mismanagement and transparency. While no formal regulatory action has been taken yet by the RBI, expanding oversight of app-specific wallets could significantly impact India's digital economy, where prepaid balances are widely used to promote customer loyalty and frequent usage. This is especially significant at a time when India, the fastest-growing large economy, expects its digital economy to grow almost twice as fast as the overall economy, contributing to nearly one-fifth of national income by 2030. This means that, in about five years, the share of the digital economy will become larger than that of agriculture or manufacturing in the country. Agriculture employs around 45% of India's workforce and contributes nearly 15% to its $3.5 trillion economy. In India, e-wallets—also known as digital wallets—are mobile applications or software tools that let users securely store their payment details for both online and offline transactions. Functioning like virtual versions of traditional wallets, these platforms allow for cashless payments, eliminating the need to carry physical currency or cards. The growing use of e-wallets in the world's most populous nation has played a key role in driving the shift toward a cashless economy, making transactions faster and more convenient for millions of users. PhonePe is a widely used digital payment platform in India, built on the Unified Payments Interface (UPI). It facilitates money transfers and bill payments and provides access to financial services like insurance and investment products. Google Pay (NASDAQ: GOOGL) has also emerged as a major player in India's digital payments space. It offers a smooth and secure interface for conducting UPI payments, whether online or at physical stores. Amazon Pay (NASDAQ: AMZN), integrated within the Amazon app, functions as a closed-loop wallet in India but is also accepted by several partner merchants, making it useful beyond Amazon's ecosystem. Other popular digital wallets in India include MobiKwik, Ola Money, and Airtel Money. These platforms enable quick payments, mobile recharges, and utility bill settlements. Watch: RockWallet is the go-to app for everyone title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Time of India
22-05-2025
- Business
- Time of India
Interim relief for Puneet Singh, Gensol for usage of defamatory words against them
A Delhi court has allowed interim relief sought by Puneet Singh , co-founder, Gensol Engineering Ltd , the company and its affiliate BluSmart for usage of defamatory words which are unsubstantiated or unverified. The court has however clarified that the order shall not have any bearing on the merits of the matter and shall not be construed to restrain any person from reporting about investigation and court proceedings in relation to the allegations so long as it is fair and accurate reporting based on duly substantiated, conclusive and verified material. Singh was represented by his advocate Ayush Jindal. Jindal had argued that the publication contained reckless innuendos, distorted facts, prejudicial implications thereby violating plaintiffs rights guaranteed under Articles 19 & 21 of Constitution of India. It is also stated that the defamatory material constitutes an egregious assault upon the personal and professional reputation. The court while granting the interim relief opined that Court very much understands and recognises that there is freedom of speech and expression under Articles 19(1)(a) of the Constitution of India, however, these are not absolute rights but have limitations contained within itself under Article 19(2) of the Constitution. The Ministry of Corporate Affairs, the National Financial Reporting Authority (NFRA) and the Enforcement Directorate are looking into the books of Gensol Engineering following fraud allegations In April, Sebi banned the promoters of renewable energy company Gensol Engineering Ltd , brothers, Anmol and Puneet Jaggi, from the capital markets over alleged fund diversion and document falsification. The regulator also ordered a forensic investigation. Soon thereafter, BluSmart, an all-electric vehicle ride-hailing service promoted by the Jaggi brothers, began shutting its operations. ED's Fema case is focusing on whether funds to the tune of Rs 200 crore routed through a car dealer and cycled back to promoter-linked entities were in contravention of FEMA norms. Some of it was used for unrelated personal expenses, including buying luxury real estate. At the centre of the controversy is the alleged misutilisation of term loans availed by Gensol Engineering Ltd from state-run Indian Renewable Energy Development Agency and Power Finance Corporation . According to Sebi, the company secured a total of Rs 977.75 crore in loans, of which Rs 663.89 crore was meant specifically for the purchase of 6,400 electric vehicles (EVs). These EVs were procured by the company and subsequently leased to BluSmart, a related party. However, in a response submitted to Sebi in February, Gensol Engineering admitted that it had procured only 4,704 EVs till date, while it had received funding for 6,400 EVs. This was corroborated by Go-Auto Private Limited, the EV supplier, which confirmed delivering 4,704 units to the company for a total consideration of Rs 567.73 crore. Given that Gensol Engineering was also required to provide an additional 20% equity contribution, the total expected outlay for the EVs was around Rs 829.86 crore. By that calculation, Rs 262.13 crore remains unaccounted for, said people in the know.
Economic Times
22-05-2025
- Business
- Economic Times
Interim relief for Puneet Singh, Gensol for usage of defamatory words against them
A Delhi court granted interim relief to Puneet Singh, co-founder of Gensol Engineering and BluSmart, against defamatory statements. The court clarified that fair and accurate reporting of investigations and court proceedings is still permitted. This comes amidst investigations by the Ministry of Corporate Affairs, NFRA, and ED into Gensol Engineering following fraud allegations, including fund diversion and FEMA violations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: A Delhi court has allowed interim relief sought by Puneet Singh , co-founder, Gensol Engineering Ltd , the company and its affiliate BluSmart for usage of defamatory words which are unsubstantiated or court has however clarified that the order shall not have any bearing on the merits of the matter and shall not be construed to restrain any person from reporting about investigation and court proceedings in relation to the allegations so long as it is fair and accurate reporting based on duly substantiated, conclusive and verified was represented by his advocate Ayush Jindal. Jindal had argued that the publication contained reckless innuendos, distorted facts, prejudicial implications thereby violating plaintiffs rights guaranteed under Articles 19 & 21 of Constitution of India. It is also stated that the defamatory material constitutes an egregious assault upon the personal and professional court while granting the interim relief opined that Court very much understands and recognises that there is freedom of speech and expression under Articles 19(1)(a) of the Constitution of India, however, these are not absolute rights but have limitations contained within itself under Article 19(2) of the Ministry of Corporate Affairs, the National Financial Reporting Authority (NFRA) and the Enforcement Directorate are looking into the books of Gensol Engineering following fraud allegationsIn April, Sebi banned the promoters of renewable energy company Gensol Engineering Ltd , brothers, Anmol and Puneet Jaggi, from the capital markets over alleged fund diversion and document falsification. The regulator also ordered a forensic investigation. Soon thereafter, BluSmart, an all-electric vehicle ride-hailing service promoted by the Jaggi brothers, began shutting its Fema case is focusing on whether funds to the tune of Rs 200 crore routed through a car dealer and cycled back to promoter-linked entities were in contravention of FEMA norms. Some of it was used for unrelated personal expenses, including buying luxury real the centre of the controversy is the alleged misutilisation of term loans availed by Gensol Engineering Ltd from state-run Indian Renewable Energy Development Agency and Power Finance Corporation . According to Sebi, the company secured a total of Rs 977.75 crore in loans, of which Rs 663.89 crore was meant specifically for the purchase of 6,400 electric vehicles (EVs). These EVs were procured by the company and subsequently leased to BluSmart, a related in a response submitted to Sebi in February, Gensol Engineering admitted that it had procured only 4,704 EVs till date, while it had received funding for 6,400 EVs. This was corroborated by Go-Auto Private Limited, the EV supplier, which confirmed delivering 4,704 units to the company for a total consideration of Rs 567.73 that Gensol Engineering was also required to provide an additional 20% equity contribution, the total expected outlay for the EVs was around Rs 829.86 crore. By that calculation, Rs 262.13 crore remains unaccounted for, said people in the know.
