Struggling with insolvency, BluSmart’s valuable EV fleet and tech assets are trapped in subsidiaries, complicating creditor recovery and leaving its future uncertain.
BluSmart, the electric cab firm, is grappling with a complex insolvency case that began on July 29, 2025, when the National Company Law Tribunal (NCLT) admitted a petition from a creditor.
The case has uncovered major challenges in valuing the company’s assets, particularly its fleet of electric vehicles (EVs) and proprietary technology, which are locked within subsidiaries not automatically included in the insolvency process.
Founded in 2019 by Anmol Singh Jaggi, Punit Goyal, and Puneet Singh Jaggi, BluSmart operated with an asset-light model, leasing electric vehicles and using its own technology platform. While the company’s parent entity, BluSmart Mobility Pvt Ltd, is undergoing insolvency proceedings, its fleet and technology are housed in four wholly owned subsidiaries: BluSmart Mobility Tech Pvt Ltd, BluSmart Charge Pvt Ltd, BluSmart Fleet Pvt Ltd, and BluSmart Premium Fleet Pvt Ltd.
The primary issue, as identified by Ritesh Kumar Adatiya, the Interim Resolution Professional (IRP) appointed by the NCLT, is that these subsidiaries, despite being wholly owned, are legally separate entities. These subsidiaries are facing their own set of challenges, and without consolidating them into the main resolution process, it is nearly impossible to get an accurate valuation for the creditors.
Under the Indian Insolvency and Bankruptcy Code (IBC), subsidiaries, even if wholly owned, are treated as independent legal entities. This legal structure prevents their assets from being automatically included in the parent company’s insolvency proceedings, creating a significant barrier for creditors hoping to recover their dues.
Experts have advised the Committee of Creditors (COC) and NCLT to bring the subsidiaries under the same resolution process to achieve a fair and complete valuation of BluSmart’s assets. However, while this approach may seem logical, it requires navigating the complexities of insolvency law.
The assets of these subsidiaries can only be included in the resolution if the subsidiaries themselves are brought under insolvency. In cases like BluSmart’s, where operations across entities are closely linked, the law may allow for merging the resolution processes to ensure efficiency and prevent asset value erosion.
BluSmart’s fleet consists of approximately 8700 EVs, with 4700 vehicles leased from Gensol Engineering Ltd., a related party with common promoters. This fleet has been subject to disputes, as creditors attempt to repossess vehicles.
BluSmart had entered leasing agreements with financial institutions, including Axis Bank, HDFC Bank, and Mahindra Bank. Some creditors have filed legal action after the company suspended operations in April 2023.
In addition, the company faces multiple legal challenges. In 2023, the Securities and Exchange Board of India (SEBI) filed cases against the Jaggi brothers, alleging violations related to the company’s operations and financial disclosures. This further complicated BluSmart’s financial recovery.
The company’s asset-light model, relying on leasing agreements with various financial institutions, has also created difficulties in vehicle recovery. Some vehicles leased under BluSmart’s subsidiaries have been repossessed by creditors, putting additional pressure on the company’s ability to meet its obligations.
BluSmart’s ongoing legal and financial issues have raised concerns about the broader impact on India’s growing EV market, where companies like BluSmart are seen as pioneers in green transportation. As insolvency proceedings continue, there are calls for clearer legislative guidelines on the treatment of subsidiaries in corporate insolvency cases.
Experts argue that the current legal framework must evolve to effectively address complex cases like BluSmart’s. As the company’s creditors and management navigate the insolvency process, the resolution will depend on both legal interpretations and the company’s ability to resolve its operational and financial challenges, determining the future of its electric fleet and technology.
