Delhi High Court lawyer Gensol transfers 95 electric vehicles, appoints receivers for maintenance
The Delhi High Court has banned Gensol Engineering Ltd and Blusmart Mobility Pvt Ltd from selling, transferring or creating third-party rights to 95 electric vehicles (EVs), which are leased to them by climate finance company Clime Finance Finance Private Limited.
Judge Jyoti Singh said in a notice to Gensol, Blusmart and its sponsors on Tuesday that the court-appointed receivers will detain EVS to ensure its maintenance, especially battery maintenance. No one appeared in Gensol at the hearing.
“The court believes that appointing a receiver who should be responsible for the vehicle and ensure that they are properly paid to avoid the turret drainage,” the court said. However, the car will not move from its current location.
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The court also ordered EV companies not to hinder the work of recipients. “If there are any obstacles, it will be open to the recipient to obtain police assistance from the local police station, which will enable full cooperation.” The court said the cost of the receiver has been determined ₹500,000, whose mission is to submit regular reports on vehicle conditions and maintenance.
Allegedly defaulted on lease payment
Clime Finance moved to the High Court on Tuesday under the Contration and Conciliation Act, saying it had leased the 95 Tata Xpres-t electric vehicle to the Gensol entity in 2022 for taxi and ride services for a three-year period. Clem said Gensol and Blusmart should default on lease payments in March 2025.
This also caused concern that Blusmart stopped operating, putting the convoy in danger. Clime asserted that its contract allows it to recover the vehicle in the event of a breach. The company claims “absolute and supreme rights” to electric vehicles, saying the lease has been terminated.
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Clem’s lawyer told the court: “These leases have been terminated and Sebi has also initiated an inquiry against the defendant Mr Puneet Jaggi. I request that they are confined to alienation or dealing with vehicles until the issue is resolved.”
He added: “These are electric cars and if there is no maintenance battery they will be drained, causing irreversible damage…I don’t require that you have it at this stage, but at least the receiver should take enough steps to save the car.”
The court will hear the case next time on July 24.
The second hit of the week
For Gensol and Blusmart, this is the second legal blow to renting EVs. On April 25, Judge Jyoti Singh banned the companies from renting third-party rights to 175 electric vehicles by Japanese financial services company Orix, which claimed Gensol had violated the terms of the lease and failed to pay.
Founded in 2019 by Anmol Singh Jaggi, Puneet Singh Jaggi and Punit K Goyal, Blusmart positioned itself as India’s first all-electric ride-hailing platform. As of January, it claimed to have a fleet of more than 8,500 electric vehicles, 5,800 charging points at 50 hubs, and more than 10,000 active drivers.
Sebi recently sent a demonstration notice to the company on alleged governance mistakes, including undisclosed related party transactions and so-called financial violations. Market regulators also banned the Jaggi brothers from taking key management roles in any listed entity and restricted Gensol and its facilitators from entering the capital market.
Suspected of abusing loans
Gensol’s handling is also under scrutiny ₹97.8 billion loans from Power Finance Corporation (PFC) and the Indian Renewable Energy Development Agency (IREDA) are used to purchase 6,400 EVs. Disclosures show that only 4,704 cars were actually purchased.
The PFC has filed a complaint with the Economic Crime Department of Delhi Police, alleging that it submitted forged documents. According to regulatory files, it is believed that it is believed to have IREDA funding for 3,400 electric vehicles, which may exceed 1,400 vehicles.
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Mint Previous reports said the PFC is exploring legal recourse, including lawsuits to restore its dues in bankruptcy courts and debt recovery courts.
Meanwhile, Blusmart temporarily closed its app and notified users that the subscriptions were suspended until May 7. In an email to customers, the company promises a refund within 90 days if the service is still suspended after that date.
