BharatPe co-founder Ashneer Grover has publicly defended his investment in BluSmart, an electric vehicle (EV) cab service provider currently under regulatory scrutiny, clarifying that he holds no operational role in the company and labelling himself a “victim” of the unfolding events.
Grover disclosed that he had invested ₹1.5 crore in BluSmart and an additional ₹25 lakh in Matrix, a separate entity. Responding to the controversy, Grover emphasised that he is merely a shareholder and has no involvement in the managerial or financial decisions of BluSmart or Gensol Engineering, the parent company embroiled in allegations.
“Dragging my and my company’s name into the Gensol/BluSmart fiasco is shameful. I am the victim here, having personally invested in BluSmart,” Grover posted on X (formerly Twitter).
He further stated that he is willing to publicly disclose his bank account statements and tax returns to demonstrate the legitimacy of his investments.
Addressing compliance responsibilities, Grover pointed out that in private limited companies, it is the shareholders’ obligation to declare their sources of funds, not the company’s duty to verify them.
“A private limited company is not liable for the conduct of shareholders or for ascertaining their source of funds,” he said.
SEBI Action Sparks Wider Fallout
The controversy stems from a SEBI investigation into serious financial misconduct by Anmol and Puneet Singh Jaggi, co-founders of Gensol Engineering. The probe revealed that funds meant for purchasing electric vehicles for BluSmart were diverted for personal use, including acquiring a luxury apartment in Gurugram, manipulating Gensol’s stock prices, and other personal expenses. SEBI has since barred the Jaggi brothers from accessing the securities market and ordered a forensic audit of Gensol’s financials.
The operational halt at BluSmart has added to the concerns of stakeholders and investors. Grover, expressing hope for BluSmart’s survival, remarked: “I hope the business/company can survive the current fiasco for the sake of its stakeholders.”
This recent development underscores the increasing ripple effects of corporate governance collapses in India’s startup ecosystem, with investors now becoming increasingly cautious about compliance and transparency standards.
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