CCPA Examining Wallet Refund Complaints By BluSmart Customers: Report

SUMMARY

BluSmart customers are raising complaints regarding their unused wallet balance and refund claims after BluSmart shut operations

CCPA is examining the nature of complaints, with a focus on issues regarding digital payments

Besides, the customers are also raising concerns regarding unresponsive customer support

The Central Consumer Protection Authority (CCPA) is reportedly looking into a host of complaints filed by BluSmart cabs consumers, after the company suspended business operations without prior notice.

A Mint report, citing sources close to the matter, said that the authority is examining closely into the nature of complaints, with a focus on issues regarding digital payments and potential violation of consumer rights.

It is pertinent to note that several BluSmart customers are raising complaints regarding their unused wallet balance and refund claims after the company shut operations without any prior notice. The customers are also raising concerns regarding unresponsive customer support.

This comes at a time when the Enforcement Directorate detained BluSmart cofounder Puneet Singh Jaggi from a hotel in New Delhi for allegedly misutilising Gensol’s funds in a fraudulent manner and personal affairs.

Besides, Delhi High Court also restrained BluSmart and Gensol Engineering from alienating or creating third-party rights on 175+ EVs leased to them by Japanese financial services company Orix’s India arm.

The whole fiasco started earlier this month when SEBI issued an interim order stating that the promoters of Gensol Engineering, Anmol Singh Jaggi and Puneet Singh Jaggi, mislead the regulatory body, credit rating agencies (CRAs), lenders and investors by using company’s funds for personal use.

The order further said that Gensol availed a loan of INR 977 Cr from Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), of which INR 663.9 Cr was to be used for purchasing 6,400 EVs for leasing to BluSmart.

The market regulator also barred the Jaggi brothers from holding any key managerial positions at the company.

The ongoing legal mess resulted in independent directors Harsh Singh, Kuljit Singh Popli, and Arun Menon resigning from their roles.

While BluSmart has roped in Grant Thornton to conduct a forensic audit of its books, the company suspended its operations in all cities including Delhi NCR, Mumbai, and Bengaluru.

Last week, Inc42 exclusively reported that Climate-focussed PE firm Eversource Capital is in talks to acquire BluSmart at a fire sale for around INR 800 Cr to INR 1,000 Cr ($90 Mn to $120 Mn).