Electric cab operator BluSmart has suspended services, days after the Securities and Exchange Board of India accused its co-founder Anmol Jaggi of diverting funds meant for vehicle purchases to buy a luxury apartment, reported Reuters.

The abrupt shutdown left thousands of BluSmart drivers without work.

“We’ve decided to temporarily close bookings on the BluSmart app,” the company said in an e-mail to customers on Thursday, without providing any reasons.

Although the app remained available to download, users were unable to select pick up time slots, indicating that services were unavailable in most parts of major cities including Delhi-National Capital Region and Bengaluru.

The suspension came two days after the Securities and Exchange Board of India barred Anmol Jaggi and his brother Puneet Jaggi from the stock market and ordered a forensic investigation into their listed solar energy company Gensol, which leased electric vehicles to BluSmart.

Anmol Jaggi is one of several co-founders of BluSmart and the managing director of Gensol.

SEBI said there was a “complete breakdown of internal controls and corporate governance norms in Gensol”.

The regulatory body alleged that “funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, DLF [a condominium in Gurugram]” for $5 million.

Other alleged diversions included the use of funds for “personal use” and a payment of $30,379 that “appears to be related to purchase of golf set”, according to SEBI’s order.

BluSmart and Anmol Jaggi did not respond to Reuters’ requests for comment. Gensol has said it will comply with the market regulator’s directives. Its shares have fallen 85% so far this year.

The probe findings have cast uncertainty over the future of BluSmart, which had earlier planned to exit its core cab business and operate as a fleet partner of Uber, according to reports from Monday.

Shareholders have approved a plan to begin transitioning BluSmart’s fleet to Uber over the next few weeks, beginning with 700 to 800 vehicles. The timeline for the transition is reportedly still being finalised.

The company operated more than 8,000 taxis and EV charging hubs in New Delhi, Mumbai and Bengaluru to compete with ride-hailing services such as Uber and Ola, which primarily use petrol-powered fleets.

The service gained popularity for airport rides and its reliability. Drivers were not allowed to cancel bookings, unlike competitors. BluSmart’s suspension was also announced by the Delhi airport in an advisory on Thursday.

Following concerns on social media about customer funds stuck in BluSmart wallets, the company said it would “initiate a refund within the next 90 days if services do not resume before then”.