After halting ride bookings, BluSmart says wallet refunds will take up to 90 days

Bengaluru: Electric cab aggregator BluSmart has pushed the timeline for refunding wallet balance to users to 90 days, up from six days, amid a pause in ride bookings across cities where it operates.Several users have taken to social media to express concern over the lack of clarity over refund. As of Thursday, bookings remained unavailable on the BluSmart app in Delhi-NCR, one of its key markets. Customers with balance in their BluSmart wallets have been advised to wait for up to three months for refunds if services don't resume.In an email sent to customers, the company said, "We've decided to temporarily close bookings on the BluSmart app. We truly appreciate your support. 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 don't resume before then."BluSmart, which operates primarily in Delhi-NCR and Bengaluru, allows users to top up their app wallets to pay for e-cab rides.The development comes against the backdrop of an ongoing probe by the Securities and Exchange Board of India (Sebi) into Gensol Engineering, a company linked to BluSmart's promoters Anmol Singh Jaggi and Puneet Singh Jaggi. Sebi has barred the Jaggi brothers from board roles and securities market access, alleging they diverted loans — intended for vehicle financing — to unrelated real estate deals.BluSmart's operations appeared to have been directly impacted by the regulatory scrutiny, with daily rides slowing down and reports of driver exits surfacing. The startup was earlier reported to be exploring a shift in strategy to operate its fleet through Uber's platform, instead of running its own booking service.Legal experts TOI spoke to said the absence of regulatory oversight over closed-loop wallets such as BluSmart's raises serious legal implications that directly affect customer rights, refund accountability, and recourse mechanisms. "Closed loop wallets are exempt under the RBI's Master Directions on Prepaid Payment Instruments (PPIs), which means they are neither licensed nor supervised by the central bank. The legal vacuum that follows renders the consumer's ability to reclaim funds precarious, with no statutory mandate on fund segregation, refund timelines, or dispute resolution," Sonam Chandwani, managing partner, KS Legal & Associates, said.The existence of these wallets outside a statutory architecture exposes customers to systemic risk. This means that if large-scale defaults occur, there is no institutional recourse, but only fragmented litigation available, which offers delayed and uncertain redressal. "Unless the judiciary interprets such wallet structures as constituting a deposit-like arrangement attracting the Banning of Unregulated Deposit Schemes Act or similar regulatory triggers, the current framework allows corporate entities to operate with user funds without accountability," she added.BluSmart did not respond to TOI's request for a comment on the matter.