Gensol Engineering Misses Rs 4 Crore PTC Repayment Tied To BluSmart Vehicles: Report

The funds were raised via PTCs issued through the online investment platform Grip Invest and distributed primarily to retail investors. These instruments were backed by 76 electric vehicles

The loan repayment structure relied on revenue generated by the vehicles in service

Source : BluSmart

Gensol Engineering, backed by the founders of electric mobility firm BluSmart, has defaulted on a Rs 4.04 crore repayment to holders of pass-through certificates (PTCs) this month, according to The Economic Times report, citing people familiar with the matter. The company’s last successful repayment was in April, it added.

The funds were raised via PTCs issued through the online investment platform Grip Invest and distributed primarily to retail investors. These instruments were backed by 76 electric vehicles previously operating on the BluSmart platform, making them asset-backed loans, the report added.

The loan repayment structure relied on revenue generated by the vehicles in service. However, with BluSmart’s cab services now halted and ongoing deal talks with Uber and fleet operators yet to materialize, the expected cash flow has dried up, putting further repayments in doubt.

Confirming the situation, Grip Invest founder Nikhil Aggarwal said that while the original issue size was Rs 5.6 crore, 56 per cent of the principal has been repaid, and the current outstanding is Rs 4.04 crore, the report added.

Lessor Takes Over Vehicles

On May 29, the Delhi High Court passed a final order allowing Vriksh Advisors, the lessor and a subsidiary of Grip Invest, to take possession of the vehicles. Aggarwal confirmed all vehicles are now under Vriksh’s control, have been inspected, and found to be in good working order.

“All vehicles are now in the possession of the lessor. The same have been inspected and found to be in good working order,” Aggarwal told ET.

Repayment Terms

A senior industry executive noted in the report that even if vehicles are redeployed, repayment terms may need to be restructured, as revenues, pricing, and commission structures differ across platforms.

Vriksh Advisors is actively seeking a suitable buyer or operator for the assets to begin recovering dues and compensating investors. “People invested in BluSmart bonds and PTCs, thinking of the cab services, which had a big brand value, and they were also attracted to the high returns offered by these instruments,” said one investor with exposure to BluSmart-backed instruments in the report.