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Crisis-hit EV cab hailing firm BluSmart is in talks with two large-scale climate and mobility focused distressed funds to revive its operations and may resume services in May, the Business Standard has reported.

BluSmart, which suspended its operations earlier this month after SEBI's interim order against co-founders Anmol Singh Jaggi and his brother, Puneet, is aiming to resume its services next month, the report added. The deal, however, is contingent to Jaggi resigning from the firm, a source cited by the publication said.

Moneycontrol couldn't verify the report independently.

BluSmart was co-founded by Gensol Engineering promoters Anmol and Puneet in 2019.

Earlier this month, SEBI alleged that the Jaggi brothers diverted loans meant for funding BluSmart's electric vehicle purchases for personal use. These included a luxury apartment in DLF's The Camellias in Gurugram, and high-end golf equipment worth Rs 26 lakh.

Gensol took term loans worth Rs 978 crore from Ireda and PFC between 2021 and 2024, with Rs 664 crore taken for purchasing 6,400 EVs to be leased to BluSmart. Gensol was to provide an additional equity (margin) contribution of 20 percent, bringing the total expected deployment of approximately Rs 830 crore for the purchase of the EVs.

In an exchange filing in February, the company said it had procured 4,704 EVs so far. Its EV supplier, Go-Auto, also confirmed that Gensol bought 4,704 EVs for Rs 568 crore.

The differential amount of Rs 262.13 crore and the actual consideration of Rs 568 crore still remain unaccounted for, SEBI said, though over a year has passed since the company availed the last tranche of the financing.

Also read: Jaggi brothers diverted funds to invest in Ashneer Grover's startup, other assets

The market regulator debarred the brothers from holding any directorship post in the company and from accessing the market following which BluSmart suspended operations. "We've decided to temporarily close bookings on the BluSmart app," the firm said in an email to customers on April 17, without giving any reasons.

The possible resumption of cab services may act as a major relief for the several customers as well as drivers whose livelihoods were put to risk.

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