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The National Company Law Tribunal (NCLT) has reportedly issued notices to BluSmart Mobility and Gensol Engineering on fresh insolvency petitions by creditors over alleged unpaid dues.
A Mint report said that Spectrum Trimpex Pvt. Ltd and Catalyst Trusteeship Ltd moved NCLT under Section 7 of the Insolvency and Bankruptcy Code (IBC) against BluSmart over unpaid dues worth INR 1 Cr each.
Another creditor Equentia Financial Services Pvt Ltd said that Gensol Engineering owed it around INR 9 Cr, the report added.
The Ahmedabad bench of the tribunal has directed both BluSmart and Gensol to file their responses within a week.
Just a few days back, NCLT issued directions to freeze and attach all the bank accounts and lockers of Gensol Engineering and its associated entities. It came after the Ministry of Corporate Affairs filed a petition seeking urgent interim relief to enable the Reserve Bank of India and Indian Banks’ Association (IBA) to take steps to secure the financial assets of Gensol and related parties.
In its order dated May 28, the NCLT noted that there was prima facie evidence that Gensol indulged in systemic fraud, involving substantial public interest.
Besides, the tribunal today also adjourned the hearing on an insolvency plea filed by the Indian Renewable Energy Development Agency (IREDA) on May 14 over a default of INR 510 Cr by Gensol. The IREDA plea is now scheduled to be heard on 11 June, the Mint report added.
Notably, Gensol borrowed INR 977.75 Cr from IREDA and Power Finance Corporation (PFC) between FY22 and FY24. Out of this, proceeds to the tune of INR 663.89 Cr were supposed to go towards buying 6,400 EVs to be leased to Gensol Engineering related entity and BluSmart.
However, the company only purchased 4,704 vehicles against the sanctioned commitment of 6,400 EVs while taking the loan, and as much as INR 262.13 Cr remains unaccounted for, as per an interim order issued by the Securities and Exchange Board of India (SEBI) in April.
Gensol And BluSmart Saga
In April, SEBI in its interim order said that Gensol and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, diverted company funds and were involved in manipulation of its share price. SEBI found that the EPC company defaulted on debt worth INR 57.9 Cr from IREDA and an additional INR 13.67 Cr in debt from PFC.
It also noted that company funds were diverted for personal use of promoters and their family members, including mother of Anmol and his wife. A part of the proceeds were also utilised to buy a luxury apartment in DLF’s “The Camellias” and invest in Ashneer Grover-led Third Unicorn.
Notably, the Jaggi brothers are also the cofounders of the EV ride-hailing startup.
Last month, Gensol Engineering MD Anmol Singh Jaggi and director Puneet Singh Jaggi tendered their resignations and stepped down from the company. In their resignation letters, they said that the resignations are made due to SEBI’s directions.
Following that, the Delhi High Court barred troubled Gensol Engineering and BluSmart from creating third-party rights over 220 additional EVs, taking the total number of EVs with such orders to 493.
Meanwhile, IREDA, after filing an insolvency plea against Gensol Engineering last month, approached the Delhi debt recovery tribunal (DRT) later to recover about INR 729 Cr from the troubled company.
Amid all this, BluSmart operations remain suspended, leaving thousands of drivers and 800 full-time employees without salaries and jobs.
The post NCLT Notices To BluSmart, Gensol On Fresh Insolvency Petitions appeared first on Inc42 Media.
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