BluSmart Insolvency: 200 Creditors Line Up With ₹500 Cr Claims

It’s been just over a month since India’s most celebrated EV ride-hailing startup, BluSmart, was pulled into insolvency proceedings. Once positioned as a torchbearer of India’s green mobility story, the company now finds itself at the heart of a corporate storm, with creditors, regulators, and employees all staking their claims.

According to filings before the Ahmedabad bench of the National Company Law Tribunal (NCLT), nearly 200 applicants have come forward with claims worth about ₹500 Cr against BluSmart’s assets. This comes despite the original insolvency petition being admitted over unpaid dues of just ₹1.28 Cr.

The magnitude of claims has left industry watchers stunned. Among the biggest creditors is Catalyst Trusteeship, which alone has staked a claim of ₹250 Cr, followed by the Indian Renewable Energy Development Agency (IREDA) with ₹130 Cr. Other creditors range from institutions like Tata Capital (₹5 Cr) to senior executives, including BluSmart’s own cofounder Punit K Goyal and several former CXOs, who have filed for unpaid employee dues exceeding ₹1 Cr each.

NCLT Proceedings on BluSmart

On July 29, the NCLT admitted Catalyst’s insolvency plea after reviewing evidence under the Insolvency and Bankruptcy Code (IBC). This included an email from BluSmart cofounder Anmol Singh Jaggi acknowledging outstanding dues. The company’s defence—that the crisis was due to “temporary financial issues”—was dismissed by the tribunal.

An Interim Resolution Professional (IRP) has now taken charge, with control over BluSmart’s assets and records. A moratorium has also been imposed, preventing any transfer of assets or fresh legal action while insolvency proceedings are underway.

Regulatory Crackdown And Suspension Of Services

BluSmart’s fall from grace didn’t come overnight. Back in April 2025, the startup had already suspended its operations after a regulatory crackdown on its sister company Gensol Engineering—the primary EV lessor for BluSmart.

The Securities and Exchange Board of India (SEBI) had passed an interim order against Gensol’s promoters, citing financial misconduct, alleged misuse of funds, forgery, and market manipulation. That triggered a domino effect across the group companies.

Notably, Gensol Engineering is also undergoing insolvency proceedings after IREDA’s plea over a default of ₹510 Cr was admitted in June. Around the same time, Gensol EV Lease, another subsidiary, faced insolvency for a ₹219 Cr default.

For BluSmart, this meant more than just regulatory pressure—it meant losing access to its fleet. Without leased vehicles and with investors on edge, the startup had little choice but to halt ride-hailing operations.

Fallout On The Ground: Drivers And Jobs At Stake

While the courtroom battles dominate headlines, the ground reality tells a different story. BluSmart’s suspension of services has left hundreds of its driver-partners without work, leading to protests in Delhi-NCR and Bengaluru earlier this year.

The company, once hailed for offering drivers stable income and fixed shifts—something rare in the gig economy—has now left many struggling to repay loans taken to finance their EVs.

The Uncertain Road Ahead

Amid all this turbulence, speculation about BluSmart’s future continues. There have been murmurs of potential acquisitions and reports that existing investors like bp Ventures and responsAbility Investments may inject $30 Mn (₹253.64 Cr) to revive the company. But so far, no concrete developments have surfaced.

For a startup that was once showcased as India’s answer to sustainable urban mobility, the current situation raises uncomfortable questions: Can BluSmart stage a comeback? Or will it be another cautionary tale in India’s fast-growing, high-risk startup ecosystem?

For now, with creditors lining up, regulators scrutinising, and drivers protesting, the once-promising EV disruptor finds itself stalled at a crossroads—its future hinging not on innovation or expansion, but on the outcome of insolvency proceedings.