The Ahmedabad bench of the National Company Law Tribunal (NCLT) has admitted an insolvency plea against BluSmart Mobility Ltd., an electric vehicle (EV) ride-hailing company, following a default on financial obligations. The petition was filed by Catalyst Trusteeship Ltd., acting as a debenture trustee on behalf of InCred Credit Opportunities Fund-I.
Catalyst alleged a default of approximately ₹1.28 crore by BluSmart, stemming from the issuance of 15 non-convertible debentures (NCDs) worth ₹15 crore in 2023. The NCLT bench, comprising Judicial Member Shammi Khan and Technical Member Sanjeev Kumar Sharma, noted that the debt and default were clearly established under Section 5(8) of the Insolvency and Bankruptcy Code (IBC).
In its July 28 order, the tribunal confirmed that Catalyst Trusteeship, as a financial creditor, had the legal standing to seek insolvency proceedings. Consequently, the court initiated Corporate Insolvency Resolution Process (CIRP) against BluSmart Mobility and appointed NPV Insolvency Professionals Private Ltd. as the Interim Resolution Professional (IRP) to oversee the process.
Additionally, the tribunal dismissed a separate insolvency petition filed by Spectrum Trimpex Private Ltd., advising the company to file its claims with the appointed IRP instead.
BluSmart Mobility, co-founded by the Jaggi brothers, who are also promoters of the listed entity Gensol Engineering Ltd., has been grappling with mounting debt issues. Interestingly, both Gensol Engineering and its subsidiary Gensol EV Lease Ltd. were also recently admitted into insolvency proceedings by the same NCLT bench after separate petitions from the Indian Renewable Energy Development Agency Ltd.
Reports indicate that BluSmart raised funds via multiple fintech lending platforms, amassing around ₹100 crore in debt. While some of this was repaid, a considerable portion remained outstanding. In particular, unpaid dues of ₹64 lakh (due March 31) and ₹63 lakh (due April 30) were cited in filings made by Catalyst.
As BluSmart ceased its ride-hailing services, its vehicles reportedly began transitioning to alternative platforms. Meanwhile, retail investors—represented by Catalyst—found themselves stuck as repayments lagged.
To recoup value, the IRP for Gensol Engineering has already moved to lease out a fleet of 4,000 electric vehicles in Delhi NCR and Bengaluru on fixed monthly rents with a small upfront fee.
Despite BluSmart’s defense citing financial distress and denying a corporate default, the tribunal held that the evidence justified the admission of the insolvency petition. The IRP has now been directed to take control of all assets, ensure continuity of operations where feasible, and preserve asset value as part of the insolvency resolution efforts.
With the rising popularity of electric vehicles in India, recent reports have sparked interest claiming that BluSmart EV cars—originally priced around ₹10 lakh—are now available via public auction starting from just ₹50,000. For many prospective buyers, this raises the question: Is this offer legitimate, or too good to be true?
BluSmart has shut down or downsized operations.
Its fleet of electric vehicles is being auctioned off.
Starting bid prices are as low as ₹50,000.
The auctions are happening on major platforms like MSTC, Cars24, and Shriram Automall.
Anyone with basic KYC documents can participate.
| Claim | Status | Our Verification |
|---|---|---|
| BluSmart has shut down operations | ❌ False | As of July 2025, BluSmart continues to operate in select cities. No public notice of a full shutdown has been issued. |
| BluSmart EVs are being auctioned | ⚠️ Unverified | While EV auctions are active, there’s no official confirmation that BluSmart’s own fleet is listed. Some vehicles may resemble fleet EVs, but their source remains unclear. |
| Starting bid is ₹50,000 | ✅ True | Some electric vehicles are listed with starting bids of ₹50,000, especially older or high-mileage models. Final prices may vary significantly. |
| Auction platforms include MSTC, Cars24, Shriram Automall | ✅ True | These platforms regularly host auctions for used commercial and passenger EVs from fleet owners, banks, and leasing companies. |
| Anyone can participate with PAN, Aadhaar, etc. | ✅ True | Registration is open to individuals and businesses with basic KYC and, in some cases, a refundable deposit. |
If you're interested in participating, here's a quick breakdown:
Register on the auction site (MSTC, SAMIL, Cars24, etc.) with your PAN, Aadhaar, mobile number, and email.
Pay a refundable deposit if required (typically ₹5,000–₹10,000).
Inspect the vehicles in person at the location before bidding (optional but strongly recommended).
Join the live auction and place bids. Starting price may be ₹50K, but final bids depend on competition and condition.
If you win, you’ll need to:
Pay the full bid amount.
Cover RC transfer charges, insurance, and other applicable fees.
Arrange for pickup or home delivery, if offered.
These vehicles are pre-owned EVs, typically ex-fleet units.
There is no warranty or battery guarantee unless specified.
Some vehicles may be high mileage or may require repairs.
Always confirm ownership transfer feasibility before bidding.
Ask about battery condition, insurance status, and service history if available.
While it's true that used EVs are being auctioned starting from ₹50,000, there is no verified confirmation that BluSmart’s fleet specifically is up for sale at this time. However, similar commercial EVs are regularly auctioned through verified platforms.
The headline figures—₹10 lakh cars starting at ₹50K—are attractive but should be viewed with realistic expectations. Final selling prices may go much higher, depending on demand, model, and condition.
The auction of used EVs at reduced prices is real — but always proceed with due diligence. Platforms like MSTC, Shriram Automall, and Cars24 offer legitimate opportunities, but thorough inspection and verification are key.
For reliable updates on EV, property, and government asset auctions