 "Gensol, BluSmart face insolvency heat as NCLT issues fresh notices")
Amid mounting trouble, the National Company Law Tribunal (NCLT) on Tuesday served notices to EV ride-hailing firm BluSmart Mobility Ltd and Gensol Engineering Ltd in connection with three insolvency pleas filed by financial creditors citing outstanding payments.
Two of the petitions, filed by Spectrum Trimpex Pvt Ltd and Catalyst Trusteeship Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC), allege that BluSmart defaulted on dues of ₹1 crore each, reported Mint.
Meanwhile, Equentia Financial Services Pvt Ltd has alleged that Gensol Engineering owes it nearly ₹9 crore.
The tribunal ordered the firms to file their responses within seven days.
Mounting dues
Last month, state-run Indian Renewable Energy Development Agency (Ireda), also filed a petition under Section 7 of the IBC against Gensol Engineering after the company defaulted on a ₹510 crore loan, the company said in a stock exchange filing.
Similarly, the Centre filed a petition against Gensol through the Ministry of Corporate Affairs (MCA) citing grave violations of corporate governance norms, diversion of funds, and financial misstatements.
Ireda's plea has been listed for June 11, while MCA's matter will be taken up on June 13.
Accounts frozen
Last week, the tribunal also allowed the Centre to freeze the bank accounts and lockers of Gensol Engineering Ltd, its 10 subsidiaries, and several individuals after multiple investigations revealed major financial irregularities.
What the case is about
Gensol Engineering came under regulatory scrutiny when market regulator Securities and Exchange Board of India (Sebi) initiated an investigation in June 2024 following complaints of share price manipulation and fund diversion by the company's promoters. The probe followed an interim order issued on April 15, 2025, wherein Sebi barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities market and holding key managerial positions within the company.
The investigation revealed that Gensol had secured loans totalling approximately ₹977.75 crore from institutions like Ireda and Power Finance Corporation (PFC) for the procurement of electric vehicles. However, only a portion of these funds was utilised for the intended purpose, with the remainder allegedly diverted for personal expenses and unrelated investments, including a luxury apartment in Gurugram.