NCLT issues notices to BluSmart Mobility and Gensol on three fresh insolvency pleas

The National Company Law Tribunal (NCLT) on Tuesday issued notices to electric vehicle (EV) ride-hailing startup BluSmart Mobility Ltd and Gensol Engineering Ltd on three new insolvency petitions by financial creditors over alleged unpaid dues.

Spectrum Trimpex Pvt. Ltd and Catalyst Trusteeship Ltd moved the tribunal under Section 7 of the Insolvency and Bankruptcy Code (IBC) against BluSmart over unpaid dues worth ₹1 crore each.

Equentia Financial Services Pvt. Ltd claimed that Gensol Engineering owed it around ₹9 crore.

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The NCLT’s Ahmedabad bench has directed both companies to file their responses within seven days.

Separately, the tribunal adjourned the hearing on an earlier insolvency plea filed by the Indian Renewable Energy Development Agency (IREDA) against Gensol, involving a ₹510 crore loan default. The IREDA plea is now scheduled to be heard on 11 June.

During previous proceedings, IREDA described Gensol as “headless” and urged the tribunal to immediately appoint an interim resolution professional to protect the company’s assets, alleging that its directors had fled following an order by the Securities and Exchange Board of India (Sebi).

The tribunal also ordered the freezing and attachment of all bank accounts and lockers belonging to Gensol Engineering Ltd and its associated entities, based on findings by the ministry of corporate affairs (MCA), Sebi, and the Serious Fraud Investigation Office (SFIO). The MCA had sought urgent action, which the tribunal approved.

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On 28 May, the Debt Recovery Tribunal (DRT) restrained Gensol Engineering and its subsidiary, Gensol EV Lease Ltd, from selling, transferring, or creating third-party rights over their immovable and movable secured assets. This followed petitions by state-run lenders IREDA and Power Finance Corp. Ltd, seeking to recover dues totalling approximately ₹992 crore.

BluSmart and Gensol Engineering are facing allegations of corporate fraud and financial misconduct by the MCA, alongside Sebi’s ongoing probe.

In an interim order on 15 April, Sebi barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities market, citing governance lapses and fund diversion.

Sebi also prohibited the promoters from holding any directorial or key managerial positions at Gensol until further notice. According to the regulator, Gensol had secured ₹977.75 crore in loans, including ₹663.89 crore intended for the purchase of 6,400 EVs, which were later leased to BluSmart, a related party.

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On 12 May, the Jaggi brothers resigned from their positions as managing director and whole-time director, respectively.