Blusmart-Gensol Debacle: Fresh Insolvency Petitions Filed Before NCLT

NCLT Issues Fresh Insolvency Notices to Gensol and BluSmart.

Expert Analysis :

• Legal Action Initiated: Blu-Smart Mobility Ltd. is facing two insolvency petitions filed by Spectrum Trimpex Pvt. and Catalyst Trusteeship Ltd. over alleged defaults in payment obligations.

• Tribunal Involvement: The National Company Law Tribunal has issued a notice to Blu-Smart based on Spectrum’s application, with the claimed default amount exceeding Rs 1 crore.

• Gensol Engineering Notice: NCLT issued a notice to Gensol on Equentia Financial Services’ insolvency petition, citing an alleged default of approximately Rs 9 crore, with seven days to respond.

• SEBI Findings on Gensol: Gensol raised Rs 975 crore loans for 6,400 EVs but bought only 4,704 for Rs 567.73 crore; over Rs 200 crore unaccounted.

• Debt Downgrade: ICRA and Care Ratings downgraded Rs 2,050 crore of Gensol’s debt to default, including Rs 1,640 crore long-term and Rs 400 crore short-term.

• Fabricated Documents: Gensol submitted fake debt servicing letters from IREDA and Power Finance Corp; rating agencies confirmed no such letters were issued.

• Regulatory Actions: Gensol asked to halt announced stock split; SEBI ordered a forensic audit of its and related parties’ accounts.