Ahmedabad, July 29, 2025 — Electric cab operator BluSmart Mobility has formally entered insolvency proceedings following a ruling by the National Company Law Tribunal (NCLT), amid mounting corporate governance concerns and allegations of financial misconduct by its co-founder.
The insolvency petition was filed by financial creditor Catalyst Trusteeship Ltd on May 13, citing defaults totaling ₹1.28 crore on non-convertible debentures issued in April 2023. The tribunal admitted the petition on July 28, appointing NPV Insolvency Professionals as the interim resolution professional (IRP) to oversee the company’s operations and assets while maintaining it as a going concern.
The proceedings follow a regulatory probe by SEBI, which in April barred BluSmart co-founder Anmol Singh Jaggi from the securities market. Investigators alleged that Jaggi diverted funds from Gensol Engineering—a publicly listed affiliate—for personal use, including the purchase of a ₹42 crore luxury apartment and a golf set worth ₹25 lakh.
BluSmart suspended operations earlier this year, citing financial constraints and fallout from the SEBI order. The company had borrowed approximately ₹100 crore through various fintech platforms and raised ₹15 crore via debentures in 2023. While initial repayments were timely, defaults began in March and April 2025, prompting legal action.
In its defense, BluSmart argued that the insolvency petition was premature and that delays stemmed from temporary financial stress. However, the tribunal rejected these claims, citing material evidence including bank statements, demand notices, and an email from Jaggi admitting liability.
The tribunal’s order initiates the Corporate Insolvency Resolution Process (CIRP) under India’s Insolvency and Bankruptcy Code. A moratorium has been imposed on all recovery proceedings, and the IRP has been directed to issue a public announcement and invite claims from creditors within three days.
BluSmart’s insolvency marks a significant setback for India’s EV mobility sector, raising broader questions about governance standards and investor protection in emerging tech-driven enterprises.
