India, April 21 -- The scandal has rocked India's startup ecosystem, and it is a shocking and deeply disappointing one. BluSmart's promoters, who are in electric vehicle (EV) mobility, have been exposed by the Securities and Exchange Board of India (SEBI) in what has been termed as a massive fraud. The financial mismanagement is one thing, but the industry is actually being exposed to a serious breach because the role of raising capital is clearly not creating real value.

BluSmart, which operates a wide fleet of electric cabs in various cities across Delhi, Mumbai and Bengaluru has been counted as one of the fast growing green mobility startups in India. The company also had loans worth nearly Rs 978 crore from public sector lenders IRED...