BluSmart Insolvency: Nearly 200 Applications Pour In With Claims Worth Rs 500 Crore — Profit Exclusive

Nearly 200 applicants have likely staked claims worth about Rs 500 crore for the assets of BluSmart Electric Mobility as part of the ride-hailing firm's insolvency proceedings, multiple sources aware of the matter told NDTV Profit.

Among those who have claimed their share from the company, Catalyst Trusteeship is said to be leading the charge with claims worth up to Rs 250 crore, one of the above mentioned people said on the condition of anonymity.

Catalyst was the entity whose plea against the EV ride hailing company was admitted by the National Company Law Tribunal of Ahmedabad in late July over a default of around Rs 1.28 crore. The Interim Resolution Professional appointed by the NCLT for BluSmart Mobility was NPV Insolvency Professionals Pvt.

Apart from Catalyst, the Indian Renewable Energy Development Agency has also likely laid claims worth around Rs 130 crore for assets of BluSmart, a second person privy of the matter explained. They did not mention the nature of the assets claimed.

The company law tribunal had earlier admitted separate petitions by IREDA for defaults of Rs 510 crore against Gensol Engineering Ltd. and Rs 219 crore against Gensol EV Lease. According to the government-backed financier's filings, cross-default provisions linked the two entities, which had availed term loans for electric vehicle leasing and infrastructure.

BluSmart Co-founder Punit Goyal, ex-CEO Anirudh Arun, ex-CBO Tushar Garg and ex-CTO Rishabh Sood are all likely to have staked claims worth over Rs 1 crore each, a third person added, saying that these claims were made under the 'employee dues' category.

Dalal Street-bound Tata Capital also claimed Rs 5 crore as a creditor, a fourth person added on the condition of anonymity.

Bids for settling the claims are likely to be invited four weeks from now, a person close to the matter explained.

NDTV Profit has reached out to all the firms mentioned in the story for their comments.

The IRP, once announced, took control of all assets and records of the company. If necessary, the IRP can also seek help from the police, and the tribunal had, in July, instructed authorities to provide full cooperation.

BluSmart’s promoters and management are under a legal obligation to fully assist the IRP, failing which the IRP may approach the tribunal for appropriate orders.

Once the plea was admitted, a moratorium under Section 14 of the Code has been imposed, which restricted the initiation or continuation of any legal proceedings against the company.

The moratorium also prohibits the transfer or sale of any of BluSmart Mobility’s assets, and bars the enforcement of security interests created by the company. No recovery of property from the company’s possession will be permitted while the moratorium is in effect.

The moratorium will continue until the insolvency process is completed or the tribunal approves a resolution plan or passes an order for liquidation.

BluSmart was founded by the Jaggi brother, who also promoted Gensol Engineering. Currently, insolvency woes are clouding over both the companies.