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Time of India
7 hours ago
- Business
- Time of India
NCLT admits BluSmart Mobility into insolvency
BENGALURU: The National Company Law Tribunal (NCLT) in Ahmedabad has admitted Catalyst Trusteeship's petition against electric‑cab operator BluSmart Mobility for defaulting on dues of about Rs 1.28 crore. The tribunal's order initiated the corporate insolvency resolution process (CIRP) and appointed NPV Insolvency Professionals Private Ltd as the Interim Resolution Professional (IRP). BluSmart, once a high‑profile player in India's EV‑based ride‑hailing market, has been battling mounting liabilities and cash flow pressures. Despite attracting venture backing and expanding its fleet, the company struggled to keep pace with operating costs and payment obligations, culminating in the admitted default that triggered the insolvency process. The proceedings come at a time when BluSmart's key shareholder, Gensol Engineering, and its subsidiary Gensol EV Lease are also under insolvency. The tribunal recently admitted separate petitions by the Indian Renewable Energy Development Agency (Ireda) for defaults of Rs 510.10 crore against Gensol Engineering and Rs 218.95 crore against Gensol EV Lease. According to Ireda's filings, cross‑default provisions linked the two entities, which had availed term loans for electric vehicle leasing and infrastructure. Personal guarantees by promoters Anmol Singh Jaggi and Puneet Singh Jaggi and corporate guarantees from Gensol Engineering were also invoked. Troubles at Gensol and BluSmart deepened after a Sebi investigation two months ago alleged that the Jaggi brothers diverted loans taken in Gensol's name to buy a luxury flat, inflate Gensol's stock price and fund personal ventures, while also forging no‑default letters from lenders such as Ireda and Power Finance Corporation to falsely claim that the company was not in default. 'The NCLT's decision, despite BluSmart's attempt to resist insolvency proceedings by citing temporary financial difficulties and minor technical defaults that were later fixed, reinforces that defaulters cannot take shelter under vague grounds,' said Akshit Goyal, partner at Goyel & Goyal. 'It upholds the sanctity of the IBC and reflects that insolvency is a last‑resort remedy to protect the lending ecosystem, not a tool for routine recovery. ' As part of the BluSmart order, the tribunal imposed a moratorium that bars any recovery proceedings, transfer of assets or enforcement of security interests against the company while the CIRP is underway. The IRP has been directed to take control of assets within seven days, invite claims from creditors, and file progress reports with the tribunal. Catalyst has been asked to provide Rs 10 lakh as interim funding to run the process, a procedural deposit that will later be adjusted by the committee of creditors. The Registrar of Companies has also been instructed to reflect BluSmart's insolvency status on the MCA portal. A significant concern for customers arises from BluSmart's wallet system. The company operated a closed‑system prepaid payment instrument (PPI), which is essentially an app‑based wallet that could only be used for BluSmart rides and related services. As per the Reserve Bank of India's master directions, these instruments do not permit cash withdrawal or redemption and do not require authorisation from the Reserve Bank. This means funds parked in such wallets are outside the purview of RBI regulation and lack the protections available to regulated payment instruments. 'There is a chance that customers may get refunds because the company's wallet operates through a PPI licence. If there was no PPI, customers would have had to file their claims, as they rank last in the recovery waterfall," Sonam Chandwani, managing partner at KS Legal & Associates, told TOI. 'The larger concern will likely be for investors rather than customers, given that wallet balances are usually small. Since BluSmart has tangible assets, the case could attract serious resolution interest, and there is also a possibility of a group insolvency angle. ' Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
India Today
2 days ago
- Business
- India Today
Have you got your BluSmart refund yet? It's been 90 days
Several customers of electric cab company BluSmart are still waiting for refunds from their in-app wallets, even after more than 90 days. Now, users say that the app itself has stopped working, making matters which operated electric cabs in Delhi-NCR and Bengaluru, had paused ride bookings in April 2025 and promised users that their wallet balances would be refunded within 90 days if services didn't as July comes to an end, users say they have not received their money back and are struggling to even access the user wrote on social media, 'I had money in my BluSmart wallet, there's been no refund for the past 3 months and now the app isn't opening either. What's going on? No communication, no update. This is seriously concerning.'Another customer, posted, 'BluSmart has not yet refunded my wallet balance after saying refund will be provided within 90 days and 90 days are over.' Users complain on X Many other users are sharing similar complaints, tagging the company and government bodies like Sebi and RBI.A user on X said, 'BluSmart has not yet refunded my wallet balance after saying refund will be provided within 90 days and 90 days are over.'Another affected user, posted, 'The 90-day refund timeline communicated by BluSmart India has elapsed, yet users have not received their wallet refunds. I truly hope BluSmart is looking into this matter and taking steps toward a resolution including processing my Rs 34k refund.'BluSmart had earlier changed its refund policy, increasing the refund wait time from six days to 90 days after it stopped accepting new the time, the company had said, 'We have decided to temporarily close bookings on the BluSmart app. While we strive to be back soon to serve you with the same warmth and smile, we will initiate a refund within the next 90 days if services do not resume before then.' tried to check the app and found it did not open, showing an error message saying, 'Something went wrong.' BluSmart app not working The delay in refunds comes amid a larger crisis involving BluSmart's business. The Securities and Exchange Board of India (Sebi) is investigating Gensol Engineering, a company linked to BluSmart, for allegedly misusing over Rs 200 crore meant for buying electric has barred BluSmart's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from taking any board-level roles and from accessing the securities market. The market watchdog has accused them of diverting vehicle loan funds for real estate allowed customers to add money to their in-app wallets to pay for electric cab rides. But after the app was shut down and operations halted, users have been left in the dark about the refund things stand, there is no clear answer on when or if the refunds will be processed. Customers who trusted the platform with their money are left waiting, frustrated and without any clear support.- Ends advertisement
News18
7 days ago
- 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.
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Business Standard
21-07-2025
- Business
- Business Standard
Ireda plans ₹2,500-3,000 crore QIP to dilute 3.76% govt stake this year
State-owned Ireda plans to raise ₹2,500-3,000 crore through qualified institutional placement route this fiscal as it looks to dilute another 3.76 per cent of the government holding in the company following a successful IPO in December 2023, a top company official said Monday. The company also said it had an exposure of ₹700 crore to the crisis-hit Gensol Engineering and it has already recovered a little over ₹100 crore by way of various instruments, including encashing their bank guarantees as well as withdrawal of the FD money. Gensol had acted as a financier and lessor of vehicles to the all-electric ride-hailing company Blue Smart. The Ahmedabad bench of the National Company Law Tribunal (NCLT) has already admitted to corporate insolvency proceedings against Gensol Engineering, following a petition by Ireda. In April this year, in an interim order, Sebi barred Gensol Engineering and promote₹-- Anmol Singh Jaggi and Puneet Singh Jaggi -- from the securities markets till further orde₹in a fund diversion and governance lapses case. We have already raised ₹2,005 crore last month through a QIP by way of government diluting 3.24 per cent stake. We are planning to raise another ₹2,500 -3000 crore in the second tranche within this fiscal, Ireda Chairman and Managing Director Pradip Kumar Das said during an interaction with the reporte₹here. This will give the company a further borrowing power worth ₹30,000 crore (this fiscal), as the thumb rule says you can borrow eight times of this money, he said, adding, We will try to optimize our equity and our borrowing so that we can optimize lending and overall minimise the borrowing cost. He said that the Government mandated the company's board to dilute up to 7 per cent this fiscal; it still has scope to dilute another 3.76 per cent stake. Das said last year Ireda borrowings were at around ₹24,000-25,000 crore. Ireda reported a 49 per cent year-on-year growth in operating profit and a 30 per cent rise in total income from operations in the first quarter of the current financial year. Ireda's outstanding loan book surged to ₹79,941 crore, a 26 per cent increase over the previous year, with significant contributions from solar, wind, and emerging technologies like green hydrogen, smart meters, and EVs, the company said.
News18
21-07-2025
- Business
- News18
IREDA plans to raise Rs 2,500-3,000 cr through QIP this fiscal
Mumbai, Jul 21 (PTI) State-owned IREDA plans to raise Rs 2,500-3,000 crore through qualified institutional placement route this fiscal as it looks to dilute another 3.76 per cent of the government holding in the company following a successful IPO in December 2023, a top company official said Monday. The company also said it had an exposure of Rs 700 crore to the crisis-hit Gensol Engineering and it has already recovered a little over Rs 100 crore by way of various instruments, including encashing their bank guarantees as well as withdrawal of the FD money. Gensol had acted as a financier and lessor of vehicles to the all-electric ride-hailing company Blue Smart. The Ahmedabad bench of the National Company Law Tribunal (NCLT) has already admitted to corporate insolvency proceedings against Gensol Engineering, following a petition by IREDA. In April this year, in an interim order, Sebi barred Gensol Engineering and promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities markets till further orders in a fund diversion and governance lapses case. 'We have already raised Rs 2,005 crore last month through a QIP by way of government diluting 3.24 per cent stake. We are planning to raise another Rs 2,500 -3000 crore in the second tranche within this fiscal," IREDA Chairman and Managing Director Pradip Kumar Das said during an interaction with the reporters here. This will give the company a further borrowing power worth Rs 30,000 crore (this fiscal), as the thumb rule says you can borrow eight times of this money, he said, adding, 'We will try to optimize our equity and our borrowing so that we can optimize lending and overall minimise the borrowing cost." He said that the Government mandated the company's board to dilute up to 7 per cent this fiscal; it still has scope to dilute another 3.76 per cent stake. Das said last year IREDA borrowings were at around Rs 24,000-25,000 crore. IREDA reported a 49 per cent year-on-year growth in operating profit and a 30 per cent rise in total income from operations in the first quarter of the current financial year. IREDA's outstanding loan book surged to Rs 79,941 crore, a 26 per cent increase over the previous year, with significant contributions from solar, wind, and emerging technologies like green hydrogen, smart meters, and EVs, the company said. PTI IAS MR MR view comments First Published: July 21, 2025, 22:15 IST 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.
