BluSmart Insolvency: 200 Applicants Ask Claims Worth INR 500 Cr

SUMMARY

An NDTV Profit report said that Catalyst Trusteeship leads with claims of INR 250 Cr, followed by the Indian Renewable Energy Development Agency (IREDA) with INR 130 Cr

Several executives, including cofounder Punit K Goyal and former C-suite officers, have also filed claims under “employee dues” exceeding INR 1 Cr each

On July 29, the Ahmedabad bench of the NCLT admitted Catalyst’s plea against BluSmart after finding sufficient evidence of financial default

Nearly a month after the Ahmedabad bench of the National Company Law Tribunal (NCLT) had admitted an insolvency plea against BluSmart over unpaid financial obligations totalling INR 1.28 Cr, around 200 applicants have likely staked claims worth about INR 500 Cr for the assets of the EV ride-hailing startup.

An NDTV Profit report said that Catalyst Trusteeship leads with claims of INR 250 Cr, followed by the Indian Renewable Energy Development Agency (IREDA) with INR 130 Cr.

Several executives, including cofounder Punit K Goyal and former C-suite officers, have also filed claims under “employee dues” exceeding INR 1 Cr each. Tata Capital has sought INR 5 Cr as a creditor.

On July 29, the Ahmedabad bench of the NCLT admitted Catalyst’s plea against BluSmart after finding sufficient evidence of financial default under the Insolvency and Bankruptcy Code (IBC), including an email from cofounder Anmol Singh Jaggi acknowledging the dues. BluSmart’s defence of “temporary financial issues” was rejected.

The report further said that the process is now being overseen by an Interim Resolution Professional (IRP) appointed by the NCLT, who has control over all assets and records. A moratorium is also in place, preventing legal proceedings or transfer of assets during insolvency.

Regulatory Crackdown And Operational Suspension

BluSmart had already suspended operations in April following the regulatory crackdown on Gensol Engineering (its primary EV lessor and sister company) and the SEBI interim order against its promoters for financial misconduct.

SEBI and enforcement agencies have been investigating and prosecuting the founders for alleged misuse of funds, forgery, and market manipulation

Meanwhile, its sister firm Gensol Engineering is also under insolvency proceedings after IREDA’s plea for a default of INR 510 Cr was admitted in June. Around the same time, Gensol EV Lease, a subsidiary, faced insolvency on similar grounds over a default of INR 219 Cr.

There have been public protests from drivers due to job losses following suspension. Amid all these, the future of BluSmart, a related entity of Gensol, remains unclear.

While there have been reports of acquisition and its investors, including bp Ventures and responsAbility Investments, plans to invest $30 Mn (INR 253.64 Cr) in an effort to revive the startup, there have been no further updates on any of these fronts.