BluSmart tech arm pushed into insolvency over Rs 5.8 crore dues

The National Company Law Tribunal (NCLT) in Ahmedabad has admitted BluSmart Mobility Tech Private Limited, the technology arm of the electric taxi fleet operator BluSmart, into corporate insolvency. The order was passed on October 14, 2025, on a petition filed by one of its software vendors.

The tribunal’s decision came on an application filed by Lepton Software Export and Research Private Limited, a reseller of Google Maps platform products. Lepton Software sought the initiation of a Corporate Insolvency Resolution Process (CIRP) against BluSmart for defaulting on an operational debt of Rs. 5,84,43,201.76.

This amount includes a principal of over Rs. 5.39 crore for unpaid invoices for “Google On-demand Rides and Deliveries (ODRD) Services” used by BluSmart from April 2024 to April 2025, and interest calculated at 2.5% per month as per their agreement.

A dispute over ‘implied’ services

According to the NCLT order, BluSmart and Lepton had a formal agreement that expired on September 30, 2024. BluSmart argued that all invoices raised after this date—which constitute the bulk of the debt—were invalid as there was no active contract, and thus did not qualify as an “operational debt” under the IBC. The company contended that the admitted pre-expiry debt was only about Rs. 30 lakh, below the Rs. 1 crore threshold required to initiate insolvency.

However, the NCLT bench, comprising Member (Judicial) Shammi Khan and Member (Technical) Sanjeev Sharma, rejected this argument. The tribunal pointed to a series of emails from BluSmart in April 2025 that acknowledged the dues and even requested invoices. The court held that BluSmart’s continued use of the Google Maps services without objection after the contract expiry created an “implied contract” or a quantum meruit basis for payment.

“The Corporate Debtor’s contention that post-expiry invoices lack foundation… is an afterthought, raised only in the reply,” the order stated, noting that no dispute was raised when the invoices were received or when a statutory demand notice was served.

Moratorium declared, IRP appointed

With the admission of the petition, an immediate moratorium under Section 14 of the IBC has been declared. This prohibits any legal actions, transfers of assets, or recovery proceedings against BluSmart Mobility Tech.

The NCLT appointed Mr. Pawan Kumar Goyal as the Interim Resolution Professional (IRP) to take control of the company’s operations, manage its assets, and invite claims from other creditors. The Operational Creditor, Lepton Software, has been directed to deposit Rs. 5 lakhs to fund the initial costs of the CIRP.

Broader insolvency cloud over BluSmart Group

This insolvency filing against the technology subsidiary comes amidst a wider corporate storm for the BluSmart group. The holding company, BluSmart Mobility Limited (BSML), is already undergoing a Corporate Insolvency Resolution Process.

In an additional affidavit, BluSmart Mobility Tech’s new management detailed that the Resolution Professional of BSML, with the approval of the Committee of Creditors, has taken steps to gain control over its subsidiaries to protect the value of the group’s assets. The subsidiaries include:

• Blu-Smart Mobility Tech Pvt. Ltd. (now under CIRP, holds the proprietary app, algorithms, and IP)
• Blu-Smart Fleet Private Limited (owns 149 EVs)
• Blu-Smart Charge Private Limited (manages charging infrastructure)
• Blu-Smart Premium Fleet Private Limited (owns 178 EVs)

The affidavit stated that the new management is engaging in discussions for a “holistic resolution” of the entire BluSmart Group.

Background: The Gensol Engineering connection

The insolvency troubles extend beyond the BluSmart brand. The founders of BluSmart, Anmol Singh Jaggi and Pulkit Jain, are also the promoters of Gensol Engineering Ltd., a listed company involved in solar consulting and electric vehicle manufacturing.

In a separate proceeding, Gensol Engineering Limited was also admitted into corporate insolvency by the NCLT Ahmedabad bench in August 2024. The petition was filed by operational creditors due to unpaid debts. This parallel insolvency highlights the significant financial strain spreading across the business ventures promoted by the same founders, impacting both the flagship EV ride-hailing service and its associated solar and EV manufacturing arm.

The admission of BluSmart Mobility Tech into insolvency marks a critical juncture for one of India’s prominent EV ride-hailing platforms, raising questions about the future of its operations and the prospects for a consolidated resolution of the entire group.

Also See: Gensol Engineering invites EoIs; deadline for submission of resolution plans is Nov 29