Latest news with #InsolvencyandBankruptcycode
News18
3 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.
News18
23-07-2025
- Business
- News18
Setback For Gensol: NCLT Admits IREDA Insolvency Plea Over Rs 510 Cr Default
Last Updated: The NCLT Ahmedabad admitted IREDA's plea for insolvency against Gensol Engineering Ltd over Rs 510.10 crore loan default. SEBI barred Gensol's promoters for fund misuse. In a setback for Gensol Engineering Limited, the National Company Law Tribunal (NCLT), Ahmedabad Bench has admitted a plea by Indian Renewable Energy Development Agency Ltd (IREDA) to initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. IREDA, a public sector NBFC under the Ministry of New and Renewable Energy, alleged that Gensol defaulted on loan repayments worth Rs 510.10 crore across five sanctioned financial facilities, including electric vehicle leasing and solar power projects. The loans were disbursed between March 2022 and May 2024. 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. IREDA admitted supporting evidence including ledger extracts, bank statements, and filings with NeSL (National E-Governance Services Ltd), as well as invoking personal guarantees of the company's promoters. The tribunal also directed IREDA to deposit Rs 20 lakh towards CIRP costs and instructed all concerned authorities, including the Registrar of Companies and IBBI, to be notified of the order. Gensol Engineering shares hit the 5% lower circuit to halt trading at Rs 48.72 apiece today, July 23. Gensol Fund Saga Sebi had barred the Gensol Engineering's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market due to allegations of misusing public company funds for personal gain. The promoters are accused of siphoning off loan funds meant for the company, misleading investors, lenders, and regulators. The interim order not only restricts them from accessing capital markets but also prevents them from holding key positions in any listed company for the time being. It is the alleged misuse of nearly Rs 262 crore from the Rs 978 crore loaned to Gensol by the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). The funds were intended for acquiring 6,400 EVs for leasing to BluSmart, but only 4,704 vehicles were purchased. Sebi's findings suggest that a portion of the funds was redirected to personal luxuries, such as high-end real estate, foreign travel, golf equipment, and other personal expenses. Since the unfolding of the Gensol Fund saga, shares of the company plummeted up to 93 per cent. 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.
News18
15-05-2025
- Business
- News18
Gensol Shares Hit 5% Upper Circuit After IREDA's Bankruptcy Filing For Rs 510 Cr Default
Last Updated: IREDA Share Price: IREDA files bankruptcy against Gensol Engineering for a defaulted amount of Rs 510 crore. IREDA and Gensol shares are in focus today. IREDA Share Price, Gensol Share Price: Shares of Gensol Engineering hit 5% upper circuit at Rs 62.44 per share in the opening trade on Thursday, following IREDA's decision to file for Bankruptcy against Rs 510 default loan. Meanwhile, IREDA's shares trade flat at Rs 167.89 apiece in the morning session, against the previous day close at Rs 167.79 apiece. 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. The promoters (Anmol And Puneet Jaggi) are accused of siphoning off loan funds meant for the company, misleading investors, lenders, and regulators. The interim order not only restricts them from accessing capital markets but also prevents them from holding key positions in any listed company for the time being. Sebi had barred the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market due to allegations of misusing public company funds for personal gain. Jaggi Brothers Resign First Published: May 15, 2025, 09:05 IST
