The unfolding crisis at Gensol Engineering—a company linked with the now-defunct BluSmart cab service—has deepened following multiple defaults, legal setbacks, and serious allegations of fund misappropriation:
🔴 Missed PTC Repayment
Gensol Engineering missed a ₹4.04 crore payment to Pass-Through Certificate (PTC) holders this month. These PTCs were raised on Grip Invest, backed by 76 electric vehicles that operated on BluSmart's fleet.
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Last payment: April 2025.
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Total PTC funds raised: ₹5.6 crore.
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Amount repaid so far: 56% of principal.
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Vehicles status: Now idle after BluSmart halted operations.
🚗 Court Orders & Vehicle Repossession
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On May 29, the Delhi High Court granted control of the 76 EVs to Vriksh Advisors, a Grip Invest subsidiary.
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Vriksh is now working to redeploy, lease, or sell the vehicles and has begun setting up EV charging infrastructure.
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The EVs were found in good condition, but revenue models on new platforms (like Uber) could differ, altering repayment dynamics.
📉 Investor Fallout
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Many investors bought these PTCs and BluSmart bonds believing in the brand’s eco-friendly image and high returns (13.6%).
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BluSmart had raised over ₹100 crore through non-convertible debentures (NCDs). Over ₹80 crore in NCDs is still outstanding.
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Platforms like Yubi and Centricity were used to distribute these instruments.
⚠️ Gensol Under Legal & Financial Siege
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Promoters Anmol Singh Jaggi and Puneet Singh Jaggi are under investigation for diverting company funds for personal use.
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Gensol’s bank accounts have been frozen by the National Company Law Tribunal (NCLT) in Ahmedabad.
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IREDA (Indian Renewable Energy Development Agency) has initiated recovery proceedings against Gensol and Gensol EV Lease for a default of ₹729 crore and has also filed an insolvency plea.
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These actions are backed by Sebi’s ongoing probe into alleged stock manipulation and misuse of EV loan funds.
⚖️ What's Next?
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Vriksh Advisors is searching for operators or buyers of the EVs to recover funds.
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Repayment to PTC holders depends on successful redeployment or sale of the idle vehicles.
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Legal and regulatory actions are likely to intensify, with potential insolvency proceedings and criminal charges against the promoters.
This situation highlights serious risks in retail debt investments in startups, especially when transparency, operations, and regulatory compliance are weak. Investors in related bonds or PTCs should closely monitor developments through official updates from Sebi, NCLT, and Grip Invest.
