The NCLT appointed NPV Insolvency Professionals as the interim resolution professional (IRP) to take charge of BluSmart’s operations and assets while continuing business as a going concern. The tribunal also ordered full cooperation from the company’s promoters and management until a resolution plan is formulated.

Founded by the Jaggi brothers, who also promoted Gensol Engineering, BluSmart’s situation parallels that of Gensol, which the same NCLT bench had admitted into insolvency proceedings earlier in June. Gensol’s fleet of 4,000 vehicles was recently leased across Delhi-NCR and Bengaluru through a fixed rental model.

BluSmart’s financial troubles surfaced after failing to repay Rs 6.4 million and Rs 6.3 million due on March 31 and April 30, respectively, from a Rs 150 million non-convertible debenture issued in 2023. Despite earlier timely repayments, these defaults led to tribunal filings by the debenture trustee.

Additionally, BluSmart borrowed approximately Rs 1 billion via multiple fintech platforms. Although some repayments were made, a significant portion of the debt remained outstanding. While the company cited financial constraints and denied default, the NCLT ruled otherwise, confirming that the case met the criteria for insolvency admission.

News source: Deccan Herald