On May 7, 2025, the Delhi High Court in India barred Gensol Engineering Ltd and ride-hailing startup BluSmart from creating third-party rights over 220 additional electric vehicles (EVs) leased from two lessors. The court-appointed receivers to take possession of the vehicles, bringing the total number of EVs under judicial protection to 493, amid allegations of lease violations and financial irregularities.
Gensol Engineering Ltd, a renewable energy and EV solutions company, and BluSmart, an electric ride-hailing startup based in India, have come under further legal scrutiny. On May 7, 2025, the Delhi High Court barred both firms from creating any third-party rights over 220 additional electric vehicles leased from SMAS Auto Leasing India Pvt. Ltd and Shefasteq OPC Pvt. Ltd. This move brings a total of 493 EVs under judicial protection due to ongoing lease disputes.
The court, led by Justice Jyoti Singh, appointed receivers to take control of the vehicles, while denying the lessors’ plea for repossession under Section 9 of the Arbitration and Conciliation Act, 1996. Gensol was also directed to provide a detailed status report on the EVs within two days, as concerns about their current location and condition were raised.
The lessors accused Gensol and BluSmart of breaching lease agreements by failing to pay due amounts for rentals and fleet management, despite receiving regular invoices. SMAS alone had leased 210 vehicles to the two companies, and Shefasteq another 10, under separate contracts. The court emphasized the importance of preserving battery health and regular vehicle operation, especially under harsh weather conditions.
This is the third such order in under two weeks, following previous rulings that protected 175 EVs leased by Orix on April 25, and 95 EVs leased by Clime Finance on April 29.
The legal troubles come amid wider regulatory challenges for Gensol, which is facing a SEBI show-cause notice over undisclosed transactions and financial mismanagement. The Jaggi brothers, who promote Gensol, have been barred from holding senior roles in any listed company, and the firm has been restricted from capital market access.
Gensol is also being probed over the alleged misuse of approximately ₹978 crore in loans from Power Finance Corp. and IREDA. Investigations suggest that out of the 6,400 EVs the loans were meant to procure, only 4,704 have been accounted for. PFC has lodged complaints with Delhi Police’s Economic Offences Wing and may pursue insolvency or recovery actions.
Meanwhile, BluSmart has suspended its ride-booking app until May 7 and promised refunds within 90 days if operations remain halted.
