NCLT Ahmedabad Moves Against BluSmart: Electric Vehicle Startup Faces Insolvency Over ₹15 Crore Debt Default

NCLT Ahmedabad Initiates Insolvency Proceedings Against BluSmart

The National Company Law Tribunal (NCLT), Ahmedabad, has admitted insolvency proceedings against BluSmart Mobility, the Gurugram-based electric vehicle ride-hailing startup. This comes after a creditor petition filed by Catalyst Trusteeship, marking a major setback for the ambitious EV player.

Why Is BluSmart Under Insolvency?

BluSmart defaulted on payments related to ₹15 crore raised through 15 secured, redeemable non-convertible debentures (NCDs) issued in April 2023. The company failed to make timely repayments, missing over ₹1.28 crore due for March and April 2025 installments.

This default breached the ₹1 crore threshold, triggering insolvency action under India’s corporate insolvency laws.

Who Filed the Petition?

Catalyst Trusteeship, acting as the debenture trustee for InCred Credit Opportunities Fund-I, pushed for insolvency after BluSmart failed to redeem the NCDs in equal principal installments as per agreement.

What Does This Mean for BluSmart?

The insolvency process could lead to restructuring, asset sales, or liquidation if the company cannot resolve its dues. BluSmart, once a promising startup in India’s EV ride-hailing space, now faces serious financial turbulence.

Final Thoughts

This move highlights the growing challenges faced by startups reliant on debt for expansion. BluSmart’s insolvency case will be closely watched as a test of India’s evolving startup financing ecosystem and debt recovery mechanisms.