Amid growing controversy, murmurs of a potential buyout of Gensol’s EV ride-hailing subsidiary—BluSmart Mobility—are doing the rounds. Reports suggest that impact investment firm Eversource Capital has evaluated a possible acquisition pegged at around Rs 1,000 crore. However, the firm has declined to comment, stating that it regularly assesses business opportunities as part of standard operations.

The regulatory heat on Gensol Engineering Ltd is intensifying by the day. After the Securities and Exchange Board of India (SEBI) initiated action against the Jaggi brothers (Puneet Singh Jaggi and Anmol Singh Jaggi, promoters of Gensol) over alleged financial misconduct, PFC (Power Finance Corporation) has now filed a formal complaint with the Economic Offences Wing (EoW), alleging document falsification in the electric vehicle (EV) leasing project involving Gensol.

In this climate, the possibility of a BluSmart buyout has raised eyebrows.

Legal experts caution that any deal for BluSmart will not be a clean sweep. “A buyer would inherit not just the business but also the baggage of a potentially tainted brand,” says Siddharth Chandrashekhar, Advocate & Counsel at Bombay High Court and senior panel counsel for CBIC & DRI.

The structure of the business poses another hurdle. BluSmart’s EV fleet is leased from its parent Gensol and not owned directly. That adds complexity to any asset purchase or business transfer, with potential legal and financial liabilities in the mix.

“SEBI is yet to initiate a forensic audit into Gensol and its related entities, including BluSmart,” says Vaibhav Kakkar, Senior Partner at Saraf and Partners. “Any adverse findings will further complicate a buyout. Until there’s clarity from SEBI’s side, serious buyers may remain cautious.”

From a legal standpoint, any acquisition would require thorough due diligence and contractual safeguards. “Representations, warranties, and indemnities would be essential to shield the acquirer from past liabilities tied to Gensol,” Chandrashekhar adds. He also points to the critical need for compliance with Section 188 of the Companies Act, 2013 and SEBI’s LODR Regulation 23, both of which deal with related-party transactions and audit oversight.

While BluSmart has built a reputation as a customer favourite in India’s EV mobility space, the worsening situation at Gensol may derail any easy takeover—at least for now.