Delhi HC Bars Gensol, BluSmart From Creating Third-Party Rights On 220 EVs

The Delhi High Court has barred troubled Gensol Engineering and ride-hailing startup BluSmart from creating third-party rights over 220 additional EVs, taking the total number of EVs with such orders to 493.

According to a Bar and Bench report, the Delhi HC passed the order while hearing a petition filed by SMAS Auto Leasing and Shefasteq OPC. The companies accused Gensol and its related entity BluSmart of violating lease terms and defaulting on payments. 

Justice Jyoti Singh appointed court receivers to take possession of the vehicles but rejected SMAS’ and Shefasteq’s requests for repossession.

The HC asked Gensol and BluSmart to submit a status report on the leased EVs within two days and file a full statement of assets and liabilities. 

According to a Mint report, while SMAS said it had leased 164 EVs to Gensol and 46 to BluSmart, Shefasteq said it had leased 10 EVs. The companies said that the vehicles require active use and monitoring due to battery sensitivity in hot conditions.

This is the third such ruling by the Delhi HC recently. Previously, it barred transfer of 175 EVs leased by Orix and 95 EVs leased by Clime Finance.

Troubles Of Gensol And BluSmart 

While Gensol was facing cash crunch over the last few months, its troubles escalated after SEBI, in an interim order last month, accused its promoters Anmol Singh Jaggi and Puneet Singh Jaggi of falsifying documents, manipulating share prices, and siphoning funds for personal luxuries. 

The allegations included using company money for high-end real estate purchases and funneling funds into privately held entities. As a result, SEBI barred the duo from holding any directorial positions in Gensol.

The Jaggi brothers are also the cofounders of BluSmart. Following SEBI’s order, the ride-hailing startup suspended its operations, leaving nearly 10,000 drivers jobless.

Earlier this week, the drivers held a protest at Delhi’s Jantar Mantar demanding government intervention. 

Meanwhile, the Enforcement Directorate (ED) is probing Gensol for possible violations of foreign exchange laws. 

The corporate affairs ministry has also ordered a formal probe into Gensol and BluSmart under Section 210 of the Companies Act to investigate potential corporate governance violations.