Electric ride-hailing startup BluSmart Mobility has officially entered insolvency following a payment default of over ₹1.28 crore. The National Company Law Tribunal in Ahmedabad admitted BluSmart into the Corporate Insolvency Resolution Process after a petition was filed by financial creditor Catalyst Trusteeship.
The dispute started when BluSmart raised ₹15 crore by issuing 15 non-convertible debentures on 20 April 2023. Under the agreement, the company was to begin repaying the principal by 30 April 2023 but deferred the repayment to 31 May without approval. It later defaulted on payments due in February, March and April 2025. Catalyst Trusteeship filed for insolvency citing these missed payments and included proof such as default notices, bank statements and an email from co-founder Anmol Singh Jaggi admitting to the liability.
BluSmart opposed the plea, claiming the defaults were temporary, the petition was premature and key details were missing. The company also argued that a regulatory order against its parent company Gensol Engineering influenced the filing. However, the tribunal rejected all objections and confirmed that the defaults were valid and that the promoter’s email proved liability. It also ruled that the Sebi order had no impact on BluSmart’s repayment obligations.
NPV Insolvency Professionals Pvt Ltd has been appointed as the Interim Resolution Professional and will take over BluSmart’s management, issue public notices and invite creditor claims. A moratorium has also been imposed, pausing all legal and recovery actions. The resolution process must be completed within 180 days, extendable by 90 more. If no resolution plan is approved in this time, BluSmart may be liquidated.
This development brings BluSmart in line with other Gensol-linked companies like Gensol Engineering and Gensol EV Leasing, which are also undergoing insolvency. Legal experts suggest this could become a key case for group insolvency in India, a concept not yet clearly defined under law. With shared assets and creditors across these companies, courts may explore a unified approach to resolve debts.
Earlier, Sebi had accused Gensol promoters of misusing funds and highlighted gaps in electric vehicle procurement. Both promoters resigned in May, and Gensol has since advertised leasing options for used EVs to recover value.
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