Gensol and Blu-Smart face governance concerns in India

Gensol Engineering Ltd has faced scrutiny after a recent transaction involving the sale of 2,997 electric cars to Refex Green Mobility, which will take over Gensol's loan of 315 crore. This comes amid downgrades of Gensol's borrowing status to default by rating agencies. Gensol's financial ties with Blu-Smart Mobility, an electric cab-hailing service co-founded by Gensol's chairman, Anmol Singh Jaggi, have raised governance concerns. Gensol reportedly owns a significant portion of Blu-Smart's fleet, but details about their financial relationship remain unclear. The investigation highlights Gensol's reliance on loans to finance its EV leasing business, which primarily supports Blu-Smart. As Gensol faces financial challenges, questions about transparency and corporate governance have emerged, particularly regarding the nature of loans to Blu-Smart and the lack of disclosures in their financial filings.