Gensol Engineering subsidiary taken to Delhi high court over leased EVs
New Delhi: Gensol Engineering's subsidiary, Param Renewable Energy, has been taken to the Delhi high court by electric vehicle lessor SMAS Auto Leasing India Private Ltd. The petition sought the appointment of a court-appointed receiver to take custody of the vehicles.
SMAS Auto also asked the court to direct the company to disclose, via affidavit, all movable and immovable assets, including bank accounts, they own or have an interest in, as per the petition, which was reviewed by Mint.
In addition, SMAS Auto has urged the court to direct Param Renewable to disclose the current locations of the leased EVs.
'Issue an ex-parte ad-interim injunction restraining the Respondents from alienating, transferring, or encumbering their assets in any manner prejudicial to the petitioner's interest pending the hearing and final disposal of the arbitral proceedings, and until the execution of the arbitral award,' the petition stated.
The plea noted that EVs are fast-depreciating assets due to their sensitive battery systems, which require ongoing maintenance and regular use. Prolonged inactivity, exposure to extreme heat, and a lack of monitoring, it says, significantly increase the risk of permanent battery damage and complete asset devaluation.
The lessor added that it was unaware of the location or condition of the EVs, leaving it exposed to liability for any incidents involving the vehicles while they remain under Param's control.
'Pass an order directing the Respondents to disclose on affidavit all their respective movable and immovable assets, including bank accounts which are owned by them or in which they have any rights or interests,' the plea also states.
SMAS Auto is seeking a court directive requiring Param Renewable to deposit ₹ 19.22 lakh in outstanding lease rentals and service charges, along with ₹ 3.77 crore as the foreclosure value following the premature termination of the lease agreement.
The dispute stems from a Master Lease Agreement dated June 22, 2022, under which 62 EVs were leased to Param Renewable and fleet management services were to be provided.
A deed of guarantee dated 28 June 2022, was also signed by Param's directors—Anmol Singh Jaggi and Puneet Singh Jaggi—offering an unconditional personal guarantee for all payment obligations under the agreement.
According to the plea, Param defaulted on several lease payments despite receiving regular invoices this led to approach the court.
The Delhi high court is expected to hear the latest petition on Thursday.
Param Renewable Energy, established in 2019, is a prominent subsidiary of Gensol Engineering Ltd., specialising in third-party Operations and Maintenance (O&M) services for renewable energy assets.
This case follows an earlier court order dated 7 May, in which the Delhi high court directed the seizure of 164 EVs leased by SMAS Auto to Gensol Engineering.
The current petition marks the sixth such legal action in less than four weeks. The total number of EVs leased to Gensol and BluSmart that are now under judicial protection has risen to 698.
Separately, on 22 May, the Debts Recovery Tribunal (DRT)-III, Delhi, directed Gensol Engineering Ltd and its subsidiary Gensol EV Lease Pvt. Ltd to maintain status quo on their secured assets and vehicles, following petitions by state-run lenders—Indian Renewable Energy Development Agency (Ireda) and Power Finance Corp. Ltd (PFC)—seeking recovery of dues totalling approximately ₹ 992 crore.
On 16 May, the National Company Law Tribunal (NCLT) issued a notice to Gensol Engineering Ltd on a ₹ 510 crore insolvency plea filed by Ireda, alleging fraud and default in loan repayments.
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