Delhi HC Seizes 76 EVs from Gensol, BluSmart in Lease Dispute
Delhi High Court orders seizure of 76 EVs leased to Gensol, BluSmart after default, adding to 698 vehicles now under legal protection.
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The Delhi High Court on Thursday ordered the seizure of 76 Tata Tigor electric cars leased by Gensol Engineering Ltd and ride-hailing firm BluSmart, marking the fifth judicial intervention in under three weeks. The court barred both companies and their promoters from disposing of or creating any third-party interest in the vehicles.
Justice Jasmeet Singh acted on a petition by investment firm Vriksh Advisors, which leased the cars to Gensol in August 2023. The court directed a receivership to take custody of the fleet and safeguard the vehicles until further orders.
“Respondent No. 1, Gensol Engineering Ltd, its shareholders, directors including Respondent No. 2, Anmol Singh Jaggi, and other officers, are restrained from selling, alienating, transferring, encumbering, or creating third-party rights in the 76 Tata Tigor EVs owned by the petitioner, until the next date of hearing,” the order stated.
Vriksh Advisors accused Gensol of failing to meet lease rental payments and cited ongoing probes and fraud allegations against the company and its promoters. Concerned about the risk of asset diversion, Vriksh sought protection of its leased EV fleet.
This latest ruling raises to 698 the total number of Gensol- and BluSmart-leased electric vehicles under court protection. Earlier orders covered:
* 129 EVs on May 8 at the request of STCI Finance over a Rs 15 crore loan default.
* 220 EVs on May 7 following petitions by SMAS Auto Leasing India and Shefasteq OPC for missed rentals.
* 175 EVs on April 25 from Orix India amid similar lease disputes.
* 95 EVs on April 29 on behalf of Clime Finance.
The court referenced a Mint report from April 24 detailing the Enforcement Directorate’s detention of promoter-director Puneet Singh Jaggi in connection with alleged illegal foreign exchange transactions. It also noted fresh fraud, mismanagement, and credit-rating downgrade claims against Gensol and its leadership.
Gensol’s failure to pay April lease rentals further influenced the decision to allow repossession in case of default. The matter is scheduled for the next hearing on July 29.
In parallel regulatory action, the Securities and Exchange Board of India issued a show-cause notice to Gensol and barred its promoters from holding board roles in listed companies or accessing capital markets over corporate governance violations and undisclosed related-party dealings.
Gensol is under investigation for the use of ₹978 crore in loans from Power Finance Corporation and the Indian Renewable Energy Development Agency to fund 6,400 EVs, though filings indicate only 4,704 vehicles were procured. On May 14, Ireda filed an insolvency plea against Gensol at the National Company Law Tribunal, alleging fraud and loan default.
Earlier this month, PFC lodged a complaint with Delhi Police’s Economic Offences Wing accusing Gensol of using forged papers to secure financing. Ireda, which funded 3,400 EVs, may be short more than 1,400 cars according to current disclosures.
