Indian e-cab provider BluSmart enters insolvency amid corporate governance challenges
BluSmart suspended operations in April after India's market regulator barred co-founder Anmol Jaggi from the securities market.
The ban followed allegations that Jaggi diverted funds from his publicly listed affiliate, Gensol (GENO.NS), opens new tab, for personal use—including the purchase of a $5 million luxury apartment and a golf set worth $30,379.
The National Company Law Tribunal admitted insolvency proceedings against BluSmart, following a petition filed by financial creditor Catalyst Trusteeship on May 13, according to the tribunal's order dated July 28.
The creditor alleged that BluSmart defaulted on multiple payments totaling 12.8 million rupees (around $147,500), saying it had received no response or repayment from the company, the order showed.
In response, BluSmart argued that the petition was premature.
The tribunal also noted that the company's principal debt exceeded 10 million rupees, the threshold over which the corporate insolvency resolution process can be initiated.
It appointed NPV Insolvency Professionals as the interim resolution professional to oversee proceedings. It also stated that insolvency would take effect from the date of the order, marking the formal start of creditor claims, asset evaluation, and potential restructuring or liquidation under the insolvency and bankruptcy code.
($1 = 86.7810 Indian rupees)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
24 minutes ago
- Reuters
JD.com faces battle to gain ground in China's instant delivery market
Aug 14 (Reuters) - Chinese e-commerce giant ( opens new tab, is going all out to build its instant-delivery business to diversify revenue, but breaking into the competitive industry is proving difficult. The company has poured billions into JD Takeaway, the food-delivery unit it launched in February, to cut reliance on a core retail business hit by a weak economy and tough competition. Its results on Thursday showed the service has lifted its user base, traffic and revenue, with both quarterly active customer growth and shopping frequency up more than 40%. But it is struggling to take market share from long-established incumbents Meituan ( opens new tab, the industry leader, and Alibaba's ( opens new tab Daily active users in JD's delivery business have fallen steadily since peaking in mid-June, slipping more than 13% week-on-week by July 27 versus a 6% drop and a 1% gain in the previous two weeks, M Science data showed. The data signals "a significant loss of momentum for and likely market share loss", M Science analyst Vinci Zhang said. "Meituan and Alibaba already have considerable domain expertise in food delivery, and I don't think JD has expertise in that area yet. It will be very challenging," Zhang said. food delivery investments have also squeezed profitability. Its adjusted operating margin shrank to 0.3% in the June quarter from 4% a year ago. Meituan's daily orders across food and retail goods reached an all-time high of 120 million. The company holds nearly 70% of the delivery market, Morningstar analysts said in May. Alibaba's Taobao instant commerce business combined with reached 80 million daily orders early in July, with daily active users crossing 200 million. Company executives have warned of fierce competition, with the three companies together pledging nearly 200 billion yuan ($27.87 billion) in recent months to subsidize instant delivery, sparking an "instant retail" price war that has drawn regulatory scrutiny. "The competition started to intensify since July," CEO Sandy Xu said on Thursday, adding the company was focused on improving its platform to attract more users, merchants and riders. Meituan and Alibaba are yet to report quarterly results. ($1 = 7.1773 Chinese yuan renminbi)
Reuters
24 minutes ago
- Reuters
Rupee slips; S&P upgrade lends a lifeline ahead of Trump-Putin meet
MUMBAI, Aug 14 (Reuters) - The Indian rupee declined on Thursday with traders treading lightly ahead of the Trump-Putin summit, although S&P's upgrade offered a silver lining. The rupee closed at 87.5500 against the U.S. dollar, softer than Wednesday's close of 87.4400, navigating a choppy session that saw it swing between 87.39 and 87.67. With the focus squarely on the Trump-Putin meet, the S&P's upgrade of India offered a boost to the local currency right when it was grappling with midday pressure. S&P noted that India's robust external position is a key credit strength. It highlighted that current account deficits are likely to remain small over the next few years, while domestic demand stabilises and a weaker rupee boosts competitiveness. The agency further pointed to the rupee's active trading status, noting it accounts for more than 1% of global foreign exchange turnover. "In the shorter term, we may see some relief on the ratings upgrade, but the rupee is still not out of the woods as trade uncertainties persist and broad economic indicators are still weak," said Dilip Parmar, currency analyst at HDFC Securities. The Trump-Putin meeting to discuss the Russia-Ukraine war holds added significance for the rupee. The U.S. president has criticised India's purchase of Russian oil and imposed an extra 25% tariff on its goods effective August 27, doubling the rate to 50% - the highest U.S. tariff on a country alongside Brazil. The currency unit touched 87.8850 last week after Trump's tariffs salvo, with the Reserve Bank of India stepping in to prevent the rupee from breaching the all-time low of 87.95 - a level bankers believe the central bank will continue to defend. Meanwhile, the U.S. dollar index was up 0.1% at 97.835 at 1550 IST.
Reuters
2 hours ago
- Reuters
India wants US ties based on mutual respect, says its arms purchases are on course
NEW DELHI, Aug 14 (Reuters) - India said on Thursday that it hoped relations with the United States would move forward based on mutual respect and shared interests, seeking to temper worries that ties were headed downhill in the aftermath of high tariffs imposed by Washington. A U.S. defence policy team will be in New Delhi this month for talks with Indian officials and its arms purchases from the U.S. are on course despite the strain in ties, the Indian foreign ministry said. A new friendship built between the two countries has hit a rough patch after President Donald Trump raised tariffs on Indian goods to 50% last week from an earlier 25% saying it was a penalty for India's continued imports of Russian oil. New Delhi has accused the U.S. of double standards in singling it out for Russian oil imports and called the tariffs unfair, unjustified and unreasonable. At the same time, it has also indicated that the warming of ties that began at the turn of the century covers a wide range of areas and should not be seen only through the prism of trade, although it hopes that trade talks will continue and result in a deal. "This partnership has weathered several transitions and we hope that the relationship will continue to move forward based on mutual respect and shared interests," Indian foreign ministry spokesperson Randhir Jaiswal told a regular media briefing. Purchases of military equipment from Washington were on course, Jaiswal said, adding that a U.S. defence policy team was expected in Delhi this month. Reuters reported last week that India has put on hold its plans to procure new U.S. weapons and aircraft and that a planned trip to Washington by the Indian defence minister had been cancelled. The Indian government subsequently said reports of a pause in the talks were wrong.
