Electric ride-hailing company BluSmart Mobility is at the heart of a major corporate and financial breakdown. With its operations shuttered in April 2025 and insolvency proceedings underway, nearly 200 creditors have filed claims worth a staggering ₹500 crore—posing a complex challenge for resolution under the IBC framework.
Legal and Financial Background
- Insolvency Trigger: On July 29, 2025, the Ahmedabad bench of the National Company Law Tribunal (NCLT) admitted a petition by Catalyst Trusteeship for default on unpaid dues of about ₹1.28 crore, initiating a Corporate Insolvency Resolution Process (CIRP).
- IRP Appointed: NPV Insolvency Professionals Pvt Ltd was appointed Interim Resolution Professional to manage BluSmart’s assets, surround legal proceedings with a moratorium, and invite further claims.Reuters
- Scope of Insolvency: Default stemmed from unpaid interest and principal on 15 non-convertible debentures (NCDs) issued in 2023
₹500 Crore in Claims: Who’s Behind It?
| Claimant | Approximate Claim |
|---|---|
| Catalyst Trusteeship | ₹250 crore |
| Indian Renewable Energy Development Agency (IREDA) | ₹130 crore |
| Tata Capital | ₹5 crore |
| BluSmart’s Co-founder & Senior Executives | ₹1 crore + |
- Major Creditors: Catalyst Trusteeship tops the list with claims worth roughly ₹250 crore, followed by IREDA with around ₹130 crore. Smaller claims include ₹5 crore from Tata Capital, while senior executives, including co-founder Punit K. Goyal, have filed claims—each exceeding ₹1 crore—for employee dues.
Fallout and Implications
- Magnitude of Claims vs Default: This explosion of claims—from just ₹1.28 crore to ₹500 crore—reflects the broader impact of the collapse on stakeholders, far beyond initial debtors.
- Asset Scrutiny & Verification: The IRP must now verify and prioritize claims, while managing a moratorium that freezes all asset transfers and legal actions.
- Potential Resolution Paths: Options include restructuring, liquidation, or possible bids from investors—though the scope and viability remain uncertain. Existing investors have signaled potential interest in reviving BluSmart, but nothing is confirmed.
Why It Matters
- Test for Group Insolvency Jurisprudence: With BluSmart tied to Gensol and other affiliate entities under scrutiny, this case may redefine group insolvency practice in India.
- Investor Confidence: The collapse casts a long shadow over India’s EV mobility space, signaling risks tied to governance, financial discipline, and regulatory oversight.
- Broader Stakeholder Impact: Beyond corporate entities, the insolvency affects drivers left stranded, vendors waiting for payments, and customers awaiting refunds.
