BluSmart, India's electric cab-hailing startup, has suspended its services in major cities as the Securities and Exchange Board of India (SEBI) investigates Gensol Engineering, which shares co-founders with BluSmart. The suspension comes after allegations that the co-founders misused substantial loan amounts for personal expenses. Customers have reported issues accessing funds in their BluSmart wallets. Despite earlier success, with substantial ARR and fleet growth, the board has not communicated updates to investors. Gensol clarified it is not pursuing any significant transactions despite market speculation about a partnership with Uber.