10,000 BluSmart Drivers Become Jobless Overnight: Founders Who Embezzled Funds Go Scotfree

BluSmart, once hailed as a promising EV ride-hailing startup, is now busy making unpleasant headlines. News has it that Blusmart has left thousands of driver partners in limbo following a sudden suspension of services in April this year. As the fallout deepens, more than 1,000 affected drivers are preparing to protest at Jantar Mantar in New Delhi on Sunday, May 4, 2025. Some drivers from Bengaluru, the South Indian city that Blusmart had a strong presence in, are also likely to participate in the rally- says a report in INC 24.

Drivers, especially from Delhi NCR—the company’s biggest operational base—are demanding urgent intervention from the government. The abrupt shutdown left nearly 10,000 drivers without income, forcing many to return to their hometowns or abandon their rented homes in the city.

Many of these drivers were the sole earners in their families, typically supporting households of five or more. With no warning, the EV-hailing company halted operations on March 17, displaying a “Return to Hub” message on the driver app. Managers at BluSmart initially dismissed concerns, saying the grounding was only for two days to allow a routine audit. But when days passed with no change, panic spread.

Several drivers now face financial turmoil. One longtime BluSmart driver told a major publication that he was supposed to receive his weekly payout of ₹27,000 - ₹28,000 but hasn’t seen a single rupee in over two weeks. Another shared how he was forced to return to Gwalior after relocating his family to Delhi just days before the shutdown.

During a previous small protest in Pitampura on April 30, drivers voiced frustration and demanded accountability. One driver, visibly emotional, said the founders of the company walked away while those who powered its success were left to suffer.

It Isn't Just About Job Loss, But Betrayal!

The protesting drivers are calling for government support. They are urging authorities to either take over BluSmart’s operations or integrate them into the upcoming Sahkar Taxi scheme announced by Home Minister Amit Shah. That initiative, expected to run on a zero-commission model, could offer a lifeline to those displaced by BluSmart’s collapse.

Some of the affected drivers also demand that the lease agreements for BluSmart’s 8,000 cabs be transferred to them. They believe this would give them a chance to continue working independently. Plus, they also ask for stronger labour protections which would bring about advance notice and severance pay in case of such shutdowns in the future.

Meanwhile, BluSmart’s internal troubles are compounding. Over 800 employees have reportedly been left without work since the end of March. While the company hasn’t formally terminated their contracts, it also hasn’t paid salaries or offered any clarity. One employee said the uncertainty has affected their job prospects elsewhere, as recruiters hesitate to hire those associated with BluSmart.

At the heart of the crisis are serious financial irregularities. BluSmart’s parent firm, Gensol Engineering, saw its credit rating downgraded to “D” by ICRA and CARE in early April. This followed delays in debt repayments and accusations of submitting falsified financial data.

Regulatory scrutiny intensified after SEBI alleged that BluSmart’s founders, brothers Anmol and Puneet Singh Jaggi, misused ₹262 crore in company funds for personal luxuries, including purchasing a high-end apartment and financing international travel. As a result, the Jaggi brothers have been barred from holding any leadership roles in Gensol.

Despite the chaos, there may still be a glimmer of hope. The aforementioned publication also reported that EverSource Capital has been in active talks to acquire BluSmart in a deal potentially worth ₹800 crore. EverSource is backed by BP Ventures, one of BluSmart’s early investors.

Time still remains before we get to know the direction that this business takes, and its possible future. The affected drivers and their families are left with no choice, but to wait (and survive) until they hear back from Blusmart.