NCLT initiates insolvency proceedings against BluSmart
This follows a petition filed by Catalyst Trusteeship over unpaid financial obligations totaling ₹1.28 crore.
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The National Company Law Tribunal (NCLT) in Ahmedabad has admitted electric vehicle ride-hailing startup BluSmart into insolvency proceedings, following a petition filed by Catalyst Trusteeship which was over unpaid financial obligations that came down to Rs 1.28 crores.
The insolvency proceedings were initiated after BluSmart defaulted on a ₹15 crore debt, raised through 15 secured, redeemable, non-convertible debentures issued in April 2023. While the initial payments were made, the EV startup failed to pay ₹64 lakh due on March 31, 2025, and subsequently defaulted again on another ₹63 lakh payment also due on the same date.
In April, reports indicated that BluSmart Mobility’s financial creditors were planning to invoke an 'Event of Default' clause against the platform and were seeking immediate repayment of the outstanding loan.
Amid mounting financial pressure, drivers have begun migrating to rival platforms, while BluSmart’s parent company, Gensol, has leased out its fleet of 4,000 cars across Delhi NCR and Bengaluru to generate interim cash flow.
BluSmart Mobility was estbalished by the Jaggi brothers, Anmol Singh and Puneet Singh,
