New Delhi, April 30 -- The controversy over solar-power company Gensol and its allied electric cab service BluSmart has ignited a debate about the future of green businesses in India. At first glance, it may seem like a cautionary tale about the risks of green startups.

However, what has unfolded isn't a failure of the green economy or its sustainable vision.

Instead, a probe by India's securities market regulator revealed misconduct by Gensol's promoters, with allegations of funds misused for personal luxuries and investors and rating agencies being misled. This is a story of how greed and poor governance can tarnish even the most lofty vision statements. Vision without governance is like a seed without soil: it may sprout, but won't t...