Delhi High Court Suspends Travel Ban on Former BluSmart Director Amid ₹2,385 Crore Fraud Probe

The Delhi High Court has granted temporary relief to Inderpreet Singh Wadhwa, former Independent Director of BluSmart Mobility, by suspending the Look-Out Circular (LOC) that prevented him from leaving India. Wadhwa, a US national residing in Switzerland, was stopped at Delhi airport on August 4. The LOC was issued in May 2025 as part of an investigation into an alleged ₹2,385 crore fraud scheme involving Gensol Engineering Ltd and related entities.

The Ministry of Corporate Affairs and the Securities and Exchange Board of India (SEBI) accuse the group's promoters of large-scale diversion of public funds and corporate money. Wadhwa's defense argued he was a non-executive director with no operational control and was, in fact, a whistleblower. The government contended that the LOC was necessary to prevent him from absconding.

The court, presided over by Justice Swarana Kanta Sharma, ordered Wadhwa to furnish security of ₹25 crore and a ₹5 crore surety from a family member. He must also cooperate with the investigation and share his contact details and itinerary.

Impact This ruling provides a temporary reprieve for Mr. Wadhwa, allowing him to travel under strict conditions, but the investigation into the alleged fraud continues. It underscores the judiciary's role in balancing investigation needs with individual rights when no culpability is yet established. The outcome of the fraud investigation could significantly impact investor sentiment towards Gensol Engineering Ltd and potentially related companies in the electric vehicle sector. Rating: 7/10

Definitions * Look-Out Circular (LOC): A notice issued by authorities at immigration checkpoints to restrict individuals from leaving a country, typically when they are under investigation or facing legal proceedings. * Financial Irregularities: Suspected fraudulent or improper accounting and financial practices within a company. * Culpability: Legal responsibility for a crime or wrongdoing. * Promoters: Individuals who establish and often control a company. * Whistleblower: Someone who reports illegal or unethical activity within their organization. * Independent Director: A board member without financial ties to the company, providing external oversight. * SEBI (Securities and Exchange Board of India): India's capital market regulator, overseeing securities trading and investor protection.