Latest news with #BluSmartMobility
News18
7 days ago
- Automotive
- News18
BluSmart Enters Insolvency Over Rs 1.28 Crore Default; Resolution May Take Six Months
Last Updated: The NCLT in Ahmedabad has admitted Catalyst Trusteeship's petition against BluSmart Mobility for defaulting on dues of Rs 1.28 crore, initiating CIRP. The National Company Law Tribunal (NCLT) in Ahmedabad has admitted a petition filed by Catalyst Trusteeship against BluSmart Mobility for defaulting on dues worth approximately Rs 1.28 crore. The order marks the initiation of the corporate insolvency resolution process (CIRP) against the electric cab operator, with NPV Insolvency Professionals Private Ltd appointed as the Interim Resolution Professional (IRP). BluSmart, once regarded as a rising player in India's electric vehicle (EV) ride-hailing space, has been under increasing financial strain in recent months. Despite raising venture capital and expanding its EV fleet, the company has struggled to manage cash flows and meet operating expenses, leading to the current insolvency proceedings. The CIRP, in the best-case scenario, is expected to take 180 days, provided there are no legal complications such as litigation from promoters. 'If things go smoothly, resolution could come within six months," said a person familiar with the process. The situation worsens with BluSmart's key backer, Gensol Engineering, and its subsidiary Gensol EV Lease, also facing insolvency action. The NCLT recently admitted separate petitions filed by the Indian Renewable Energy Development Agency (Ireda), citing defaults of Rs 510.10 crore by Gensol Engineering and Rs 218.95 crore by Gensol EV Lease. According to the shared court order copy, the tribunal said that Gensol had failed to maintain financial discipline, citing defaults on 31 March, 19 April, and 12 May 2025. IREDA in the filing said that it filed an application on May 14 under Section 7 of Insolvency and Bankruptcy code, 2016 against Gensol Engineering Limited for a defaulted amount of Rs 510,00,52,672. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
29-07-2025
- Business
- Mint
BluSmart follows Gensol group firms into insolvency after ₹1.28 cr default
The wheels have come off the fraud-hit BluSmart Mobility, once hailed as a pioneer in India's electric ride-hailing startup, as the company has been formally admitted into insolvency by the National Company Law Tribunal (NCLT) in Ahmedabad. The move follows payment defaults totalling over ₹ 1.28 crore and adds BluSmart to a growing list of Gensol-linked entities now undergoing bankruptcy proceedings, including its parent Gensol Engineering Ltd and sister concern Gensol EV Leasing Pvt Ltd. In an order dated 28 July, a two-member bench comprising Justice Shammi Khan (Judicial Member) and Sanjeev Sharma (Technical Member) admitted BluSmart into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. 'In light of the above findings, this Tribunal is satisfied that the Financial Creditor is entitled to the relief as sought. The Corporate Debtor's default justifies the admission of the petition and the initiation of CIRP under the Code,' the tribunal said in its order, reviewed by Mint. The dispute with the financial creditor began after BluSmart Mobility raised ₹ 15 crore through 15 non-convertible debentures (NCDs) on 20 April 2023, with Catalyst Trusteeship as the debenture trustee. Under the agreement, BluSmart was to start repaying the principal by 30 April 2023, but unilaterally deferred it to 31 May, which Catalyst viewed as a breach. In early 2025, BluSmart defaulted on payments due in February, March, and April—totalling ₹ 1.28 crore, prompting Catalyst Trusteeship to seek insolvency proceedings against the company. Supporting documents included default notices, bank records, and an email from co-founder Anmol Singh Jaggi admitting liability that led to the admission of insolvency plea. BluSmart opposed the insolvency plea, arguing that the defaults were temporary, the petition was premature and motivated and that procedural issues such as missing IRP details and vague timelines weakened the creditor's case. The company also pointed to the 15 April Securities and Exchange Board of India (Sebi) order against Gensol Engineering and its promoters as background pressure behind the filing. However, the tribunal rejected all objections, holding that the defaults were material and proven, the promoter had admitted liability, and procedural gaps had been corrected. It also stated that the Sebi order had no bearing on BluSmart's contractual obligations to repay its lenders. The tribunal appointed NPV Insolvency Professionals Pvt Ltd as the Interim Resolution Professional (IRP), which will now take control of BluSmart's management, issue public notices and invite claims from creditors. A moratorium has also been imposed, halting all ongoing or new legal actions, asset transfers and recovery proceedings against the company. Under IBC timelines, the IRP must invite claims within three days and constitute a Committee of Creditors (CoC) within 30 days. The entire resolution process must be completed in 180 days, extendable by another 90 days. If no viable resolution plan is approved within that time, BluSmart may face liquidation. With BluSmart joining Gensol Engineering and Gensol EV Leasing in insolvency, legal experts believe the case may become a landmark test for group insolvency in India—a concept not yet formally codified in law. Courts have, however, allowed consolidated proceedings in rare cases like Videocon, where 13 related companies were treated as a single economic entity. 'This could set the stage for group insolvency. If operational and financial links between these firms are clearly established, it may prompt courts to adopt a similar approach,' said Raheel Patel, partner at Gandhi Law Associates. 'The real challenge ahead is determining whether their assets and debts should be resolved jointly or separately, and whether overlapping creditors and related-party transactions will be prioritized for scrutiny,' Sonam Chandwani, managing partner at KS Legal & Associates, said. When BluSmart defaulted and suspended operations, those same vehicles used as collateral for Gensol loans became value at risk. Power Finance Corporation Ltd and the Indian Renewable Energy Development Agency Ltd (Ireda) were thus exposed to defaults arising from both entities, effectively making them overlapping creditors, she added. Parth Contractor, founder, Chambers of Parth Contractor, said, "When one entity has a financial crunch, its ripple effects are noticed in sister concerns or associated entities. But the decision to admit a company into insolvency, does not depend on the position of the sister concerns or the group company, but solely on the transaction/issue between the specific debtor and the specific creditor, which in this case was BluSmart and Catalyst Trusteeship". BluSmart's insolvency is the latest and perhaps the most visible blow to the Gensol Group, which has been under intense regulatory scrutiny. In June, Ireda revealed that Gensol Engineering had defaulted on loans worth ₹ 510 crore. On 15 April, the Sebi issued an interim order accusing Anmol and Puneet Jaggi of diverting investor funds meant for electric vehicle purchases towards personal luxuries, including a $5 million apartment and high-end golf equipment. Sebi also found that Gensol had procured only 4,704 electric vehicles despite claiming funding for 6,400. Both promoters resigned from Gensol's board on 6 May. The Securities Appellate Tribunal (SAT), on 7 May, declined to stay Sebi's order and asked the company to respond, with the market regulator expected to issue a final decision thereafter.
Mint
29-07-2025
- Business
- Mint
BluSmart follows Gensol group firms into insolvency after ₹1.28 cr default
The wheels have come off the fraud-hit BluSmart Mobility, once hailed as a pioneer in India's electric ride-hailing startup, as the company has been formally admitted into insolvency by the National Company Law Tribunal (NCLT) in Ahmedabad. The move follows payment defaults totalling over ₹ 1.28 crore and adds BluSmart to a growing list of Gensol-linked entities now undergoing bankruptcy proceedings, including its parent Gensol Engineering Ltd and sister concern Gensol EV Leasing Pvt Ltd. In an order dated 28 July, a two-member bench comprising Justice Shammi Khan (Judicial Member) and Sanjeev Sharma (Technical Member) admitted BluSmart into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. 'In light of the above findings, this Tribunal is satisfied that the Financial Creditor is entitled to the relief as sought. The Corporate Debtor's default justifies the admission of the petition and the initiation of CIRP under the Code,' the tribunal said in its order, reviewed by Mint. The dispute with the financial creditor began after BluSmart Mobility raised ₹ 150 crore through 15 non-convertible debentures (NCDs) in April 2023, with Catalyst Trusteeship as the debenture trustee. Under the agreement, BluSmart was to start repaying the principal by 30 April 2023, but unilaterally deferred it to 31 May, which Catalyst viewed as a breach. In early 2025, BluSmart defaulted on payments due in February, March, and April—totalling ₹ 1.28 crore, prompting Catalyst Trusteeship to seek insolvency proceedings against the company. Supporting documents included default notices, bank records, and an email from co-founder Anmol Singh Jaggi admitting liability that led to the admission of insolvency plea. BluSmart opposed the insolvency plea, arguing that the defaults were temporary, the petition was premature and motivated and that procedural issues such as missing IRP details and vague timelines weakened the creditor's case. The company also pointed to the 15 April Securities and Exchange Board of India (Sebi) order against Gensol Engineering and its promoters as background pressure behind the filing. However, the tribunal rejected all objections, holding that the defaults were material and proven, the promoter had admitted liability, and procedural gaps had been corrected. It also stated that the Sebi order had no bearing on BluSmart's contractual obligations to repay its lenders. The tribunal appointed NPV Insolvency Professionals Pvt Ltd as the Interim Resolution Professional (IRP), which will now take control of BluSmart's management, issue public notices and invite claims from creditors. A moratorium has also been imposed, halting all ongoing or new legal actions, asset transfers and recovery proceedings against the company. Under IBC timelines, the IRP must invite claims within three days and constitute a Committee of Creditors (CoC) within 30 days. The entire resolution process must be completed in 180 days, extendable by another 90 days. If no viable resolution plan is approved within that time, BluSmart may face liquidation. With BluSmart joining Gensol Engineering and Gensol EV Leasing in insolvency, legal experts believe the case may become a landmark test for group insolvency in India—a concept not yet formally codified in law. Courts have, however, allowed consolidated proceedings in rare cases like Videocon, where 13 related companies were treated as a single economic entity. 'This could set the stage for group insolvency. If operational and financial links between these firms are clearly established, it may prompt courts to adopt a similar approach,' said Raheel Patel, partner at Gandhi Law Associates. 'The real challenge ahead is determining whether their assets and debts should be resolved jointly or separately, and whether overlapping creditors and related-party transactions will be prioritized for scrutiny,' Sonam Chandwani, managing partner at KS Legal & Associates, said. When BluSmart defaulted and suspended operations, those same vehicles used as collateral for Gensol loans became value at risk. Power Finance Corporation Ltd and the Indian Renewable Energy Development Agency Ltd (Ireda) were thus exposed to defaults arising from both entities, effectively making them overlapping creditors, she added. BluSmart's insolvency is the latest and perhaps the most visible blow to the Gensol Group, which has been under intense regulatory scrutiny. In June, Ireda revealed that Gensol Engineering had defaulted on loans worth ₹ 510 crore. On 15 April, the Sebi issued an interim order accusing Anmol and Puneet Jaggi of diverting investor funds meant for electric vehicle purchases towards personal luxuries, including a $5 million apartment and high-end golf equipment. Sebi also found that Gensol had procured only 4,704 electric vehicles despite claiming funding for 6,400. Both promoters resigned from Gensol's board on 6 May. The Securities Appellate Tribunal (SAT), on 7 May, declined to stay Sebi's order and asked the company to respond, with the market regulator expected to issue a final decision thereafter. Meanwhile, Gensol Engineering, now also under CIRP, has issued advertisements seeking to lease out pre-owned EVs at fixed rentals, in what appears to be an effort to monetize stranded assets amid the group's widening financial crisis.
Time of India
29-07-2025
- Automotive
- Time of India
NCLT Ahmedabad bench admits insolvency petitions against Blusmart Mobility
Academy Empower your mind, elevate your skills The Ahmedabad bench of the National Company Law Tribunal has 'admitted' a petition seeking to initiate bankruptcy proceedings against ride hailing startup BluSmart Mobility BluSmart Mobility was founded by the Jaggi brothers, the promoters of Gensol Engineering , a listed solar engineering company. Gensol itself was admitted into insolvency proceedings by the same NCLT bench in court ordered initiation of corporate insolvency procedures on BluSmart Mobility from July 28, the date of pronouncement of the order. It has appointed a resolution professional to manage the company's assets during the bankruptcy the order, which was pronounced on July 28, the bench decided on an application made by Catalyst Trusteeship, in its capacity of being a financial creditor, on the default of payments of Rs 1.28 crore by BluSmart Mobility to its creditors. ET has seen a copy of the had reported on April 21 that the financial creditors of the now-defunct ride hailing startup were planning to evoke the 'Event of Default' against the platform and were thereby seeking immediate repayment of the outstanding the company halted operations and its cabs tried moving on to other platforms, the repayments were stuck, which led to the trusteeship reaching out to the court for legal remedy. Catalyst is the trustee here — it facilitated the sale of bonds for BluSmart and held these instruments on behalf of retail investors who subscribed to the the resolution professional appointed for Gensol Engineering , the listed associated entity of BluSmart, put its fleet of 4,000 cars on lease in the National Capital Region of Delhi, and Bengaluru, for a fixed monthly rental and a small down Mobility had raised Rs 15 crore through non-convertible debentures in 2023. While the initial payments were mostly processed on time, Rs 64 lakh due on March 31 and Rs 63 lakh due on April 30 remained unpaid, according to the filings made by the trusteeship with the had first reported on April 19, that BluSmart had raised debt through multiple fintech platforms to the tune of Rs 100 crore. While a part of this was repaid, a large sum remained due for the company tried to defend its position by citing a financial crunch that had led to delays in repayments, and stated there was no corporate default, the tribunal, after much consideration, came to the conclusion that the petition could be admitted and that there was an actual case of court appointed NPV Insolvency Professionals as the interim Resolution Professional (IRP) in the case. Additionally, the court has also asked the IRP to take control of all the assets of BluSmart Mobility and preserve the value of the property as a going concern.
Time of India
12-05-2025
- Business
- Time of India
Gensol founders Anmol Singh Jaggi and Puneet Singh Jaggi resign
Gensol Engineering Limited Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi on Monday stepped down from their respective positions, citing compliance with the Securities and Exchange Board of India's (SEBI) Interim Order. The resignations are effective at the close of business hours on May 12. Sebi, had, last month barred the Jaggi brothers from accessing the securities markets until further notice amid accusations of siphoning off loan funds from their publicly listed company Gensol Engineering for personal use, raising concerns over corporate governance and financial misconduct. The brothers had launched two prominent ventures: Gensol Engineering and BluSmart Mobility , which focussed on clean energy and electric mobility. 'I am hereby resigning from the post of Managing Director of Gensol Engineering Limited with effect from the close of business hours on May 12, 2025. Further, I declare that I am resigning due to the direction given under SEBI Interim Order dated April 15, 2025,' Anmol Singh Jaggi wrote in his resignation letter addressed to the Board. Notably, the resignation also follows Securities Appellate Tribunal's (SAT) refusal to stay the above said Sebi order, last week. What is the Gensol saga? SEBI's interim order accuses Gensol of fraudulent practices and misuse of funds. A key allegation centers around the misuse of a Rs 978 crore term loan jointly sanctioned by Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC). The funds were intended for purchasing 6,400 electric vehicles to be leased to BluSmart Mobility, an affiliate of Gensol. However, only 4,700 vehicles were reportedly procured at a cost of Rs 567 crore, leaving Rs 262 crore unaccounted for. The regulator has alleged that the unutilized funds were diverted to unrelated transactions, including luxury real estate purchases and payments made to entities associated with the promoters. Gensol's stock has plunged 59% over the past month and 18.5% in the last week alone. SAT proceedings and company's response During the SAT hearing, Gensol argued that the SEBI order was issued without a hearing and described the resulting impact as a 'tremendous loss of business.' The company said the freeze on its demat account and the ongoing forensic audit had jeopardized its operations, with risks of contract cancellations and potential loan defaults. SEBI countered that Gensol had forged repayment certificates on the letterheads of state-run banks to mislead regulators, lenders, and investors. These claims were supported by Ireda and PFC, which have separately lodged complaints with the Economic Offences Wing, denying they had issued any such certificates. The Ministry of Corporate Affairs has also opened an investigation into Gensol and BluSmart Mobility. As part of the regulatory clampdown, SEBI has barred promoter Anmol Singh Jaggi from holding executive positions in any listed entity pending the outcome of the investigation. Gensol was directed by SAT to submit its response to SEBI within two weeks, while SEBI has been asked to issue a final order within four weeks after a hearing.
