The NCLT Ahmedabad bench has admitted Gurugram‑based EV ride‑hailer BluSmart Mobility into insolvency proceedings after Catalyst Trusteeship’s petition over ₹1.28 crore in unpaid NCDs. An IRP has been appointed to steer the ₹100 crore‑plus resolution process.
The Ahmedabad bench of the National Company Law Tribunal (NCLT) on July 29, 2025 admitted BluSmart Mobility, the Gurugram‑based electric ride‑hailing start‑up, into corporate insolvency proceedings, Economic Times reported. The decision follows a petition by Catalyst Trusteeship, which alleged that BluSmart had defaulted on bond repayments totalling Rs 1.28 crore.
In its order the tribunal appointed NPV Insolvency Professionals as the interim resolution professional (IRP) and directed the IRP to assume control of BluSmart’s assets “as a going concern”. The court also instructed the company’s promoters and management to cooperate with the insolvency process pending the resolution plan.
BluSmart raised Rs 15 crore through non‑convertible debentures (NCDs) in 2023. While early payments were met the company failed to settle Rs 64 lakh due on March 31, 2025 and Rs 63 lakh due on April 30, 2025, according to filings by Catalyst Trusteeship. Reuters and the ET had previously reported that BluSmart had also secured nearly Rs 100 crore in debt from multiple fintech platforms much of which remains unpaid.
Operations at BluSmart have all but ceased with drivers migrating to rival platforms amid mounting financial pressure. In a related development the resolution professional for Gensol, BluSmart’s parent and fellow NCLT‑admitted company, leased out its fleet of 4,000 cars across Delhi NCR and Bengaluru to generate interim cash flow.
The Proceedings
Catalyst Trusteeship acting as the financial creditor and bond trustee moved swiftly after BluSmart halted repayments seeking legal recourse.
“With repayments stuck and no commitment to service the debt we had no option but to file for insolvency,” said a source close to the trusteeship. The tribunal’s acceptance of the petition underscores the judiciary’s strict stance on honouring bond obligations.
BluSmart’s admission to insolvency proceedings marks one of the highest‑profile distress cases in India’s nascent electric mobility sector. Observers note that the company’s rapid expansion, from fleet deployment to multiple city rollouts, outpaced its ability to generate sustainable revenue amid fierce competition and high operating costs.
Looking ahead the IRP will invite resolution plans from interested investors who will need to balance the start‑up’s operational potential against its Rs 100 crore‑plus liabilities.
The insolvency timetable requires the committee of creditors to approve a resolution strategy within 270 days barring extensions. BluSmart’s next status hearing is slated for August 15, 2025 when the tribunal will review progress on asset valuation and the resolution professional’s initial report.
