BluSmart says wallet refunds may take up to 90 days amid Gensol fallout

Electric ride-hailing startup BluSmart has updated its refund policy for wallet balances, extending the timeline to 90 days from the previously stated six days. This change comes in response to a temporary halt in ride bookings across its operating cities.

The decision follows an ongoing investigation by the Securities and Exchange Board of India (Sebi) into Gensol Engineering, a company associated with BluSmart. It has been alleged that Gensol Engineering misappropriated over Rs 200 crore designated for the purchase of electric vehicles. BluSmart was founded by the Jaggis and Punit Goyal.

As a result, Sebi has taken action against BluSmart's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, barring them from board roles and access to the securities market. They are accused of diverting loans meant for vehicle financing to real estate transactions.

BluSmart, operating in Delhi-NCR and Bengaluru, allowed users to top up their in-app wallets for electric cab rides. Concerns have been raised on social media regarding the lack of transparency in the refund process.

Following the suspension of bookings on April 16, many users expressed frustration. Without official updates, customers turned to social platforms to express discontent and request refunds for remaining wallet balances. Numerous users encountered difficulties and have been reaching out to the company's helpline for support.

In response to a user's email query, BluSmart assured that if the service remains inactive for three months, it will issue full refunds for wallet balances.

“We have decided to temporarily close bookings on the BluSmart app. While we strive to be back soon to serve you with the same warmth and smile, we will initiate a refund within the next 90 days if services do not resume before then,” the company said.

After BluSmart stopped booking cabs in Delhi-NCR, Bengaluru and Mumbai, Delhi International Airport released a notice to passengers regarding the temporary suspension of BluSmart operations at the airport. BluSmart, known for its unique fare payment method compared to other popular ride-hailing apps in India, required users to prepay for their rides. Customers had the option to add the exact fare to their Blu Wallet or add additional funds for frequent travel.