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Time of India
30-04-2025
- Automotive
- Time of India
Delhi HC bars Gensol, BluSmart from creating rights over leased EVs
New Delhi: The Delhi High Court on Tuesday restrained Gensol Engineering , Blu-Smart Fleet , and Blu-Smart Mobility from creating third-party rights in respect of 95 Tata Xpres Electric Vehicles leased by Clime Finance. Justice Jyoti Singh appointed a receiver to secure, preserve, inspect, and take immediate possession of the 95 electric vehicles. However, the court said that the receiver will only take "deemed" charge of the electric vehicles and not move them from their existing spot and would be responsible for the upkeep of the vehicles, the judge added. Last week, the HC had restrained Gensol Engineering and BluSmart Mobility from creating any third-party rights on 175 electric vehicles leased to them by Orix Leasing and Financial Services to support BluSmart's growing ride-hailing operations in India, saying the Japanese firm made a prima facie case for interim relief. Anmol Singh Jaggi, cofounder of both Gensol Engineering and BluSmart, had acted as a guarantor for the lease obligations. Counsel Abhimanyu Mahajan and Saurabh Seth, appearing for Clime, on Tuesday sought further directions to Gensol and Blu-Smart to deposit pre-termination value, penal charges and TDS due for FY2024-2025 after adjustment of security deposit of over ₹1 crore with the court registry. They said that the companies had defaulted in remitting the lease rentals for the EVs from March 2025. 'This default, along with a concerning downgrade in Gensol's credit rating, media reports of financial distress, and breaches of the lease agreement' prompted Clime to issue notices in March and April, which also went unanswered, and then terminate the lease agreement, Clime alleged. Clime had entered into an agreement where it had leased its 95 electric vehicles to Gensol and BluSmart Fleet in 2022 for use in cab and rideshare services for a period of 36 months, which was to expire in May 2025. The two companies had defaulted in remitting the lease rentals for the 95 vehicles from March, the counsel said. Markets regulator Securities and Exchange Board of India (Sebi) had on April 15 barred Gensol's promoters, brothers Anmol and Puneet Jaggi, from accessing stock markets and ordered a forensic probe into their listed renewable energy firm. The brothers were later detained under the Foreign Exchange Management Act (Fema) on charges of financial misconduct and diversion of funds.
Time of India
30-04-2025
- Automotive
- Time of India
HC bars Gensol, BluSmart from creating rights over leased EVs
New Delhi: The Delhi High Court on Tuesday restrained Gensol Engineering , Blu-Smart Fleet , and Blu-Smart Mobility from creating third-party rights in respect of 95 Tata Xpres Electric Vehicles leased by Clime Finance. Justice Jyoti Singh appointed a receiver to secure, preserve, inspect, and take immediate possession of the 95 electric vehicles. However, the court said that the receiver will only take "deemed" charge of the electric vehicles and not move them from their existing spot and would be responsible for the upkeep of the vehicles, the judge added. Last week, the HC had restrained Gensol Engineering and BluSmart Mobility from creating any third-party rights on 175 electric vehicles leased to them by Orix Leasing and Financial Services to support BluSmart's growing ride-hailing operations in India, saying the Japanese firm made a prima facie case for interim relief. Anmol Singh Jaggi, cofounder of both Gensol Engineering and BluSmart, had acted as a guarantor for the lease obligations. Counsel Abhimanyu Mahajan and Saurabh Seth, appearing for Clime, on Tuesday sought further directions to Gensol and Blu-Smart to deposit pre-termination value, penal charges and TDS due for FY2024-2025 after adjustment of security deposit of over ₹1 crore with the court registry. They said that the companies had defaulted in remitting the lease rentals for the EVs from March 2025. 'This default, along with a concerning downgrade in Gensol's credit rating, media reports of financial distress, and breaches of the lease agreement' prompted Clime to issue notices in March and April, which also went unanswered, and then terminate the lease agreement, Clime alleged. Clime had entered into an agreement where it had leased its 95 electric vehicles to Gensol and BluSmart Fleet in 2022 for use in cab and rideshare services for a period of 36 months, which was to expire in May 2025. The two companies had defaulted in remitting the lease rentals for the 95 vehicles from March, the counsel said. Markets regulator Securities and Exchange Board of India (Sebi) had on April 15 barred Gensol's promoters, brothers Anmol and Puneet Jaggi, from accessing stock markets and ordered a forensic probe into their listed renewable energy firm. The brothers were later detained under the Foreign Exchange Management Act (Fema) on charges of financial misconduct and diversion of funds.
Time of India
29-04-2025
- Automotive
- Time of India
Delhi HC bars Gensol, BluSmart from creating rights over leased EVs amid financial irregularities
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Delhi High Court on Tuesday restrained Gensol Engineering , Blu-Smart Fleet and Blu-Smart Mobility from creating third-party rights in respect of 95 Tata Xpres Electric Vehicles leased by Clime Jyoti Singh appointed a receiver to secure, preserve, inspect, and take immediate possession of the 95 electric vehicles. However, the court said that the receiver will only take "deemed" charge of the electric vehicles and not move them from their existing spot and would be responsible for the upkeep of the vehicles, the judge week the HC had restrained Gensol Engineering and BluSmart Mobility from creating any third-party rights on 175 electric vehicles leased to them by Orix Leasing and Financial Services to support BluSmart's growing ride-hailing operations in India, saying the Japanese firm made a prima facie case for interim relief. Anmol Singh Jaggi, cofounder of both Gensol Engineering and BluSmart, had acted as a guarantor for the lease Abhimanyu Mahajan and Saurabh Seth, appearing for Clime, on Tuesday sought further directions to Gensol and Blu-Smart to deposit pre-termination value, penal charges and TDS due for FY2024-2025 after adjustment of security deposit of over Rs one crore with the court said that the companies had defaulted in remitting the lease rentals for the EVs from March 2025. 'This default, along with a concerning downgrade in Gensol's credit rating, media reports of financial distress, and breaches of the lease agreement' prompted Clime to issue notices in March and April, which also went unanswered, and then terminate the lease agreement, Clime had entered into an agreement where it had leased its 95 electric vehicles Gensol and Blu-Smart Fleet in 2022 for use in cab and rideshare services for a period of 36 months, which was to expire in May 2025. The two companies had defaulted in remitting the lease rentals for the 95 vehicles from March, the counsel regulator Securities and Exchange Board of India (Sebi) had on April 15 barred the Gensol's promoters, Anmol and Puneet Jaggi, from accessing stock markets and ordered a forensic probe into their listed renewable energy firm. The brothers were later detained under the Foreign Exchange Management Act (Fema) on charges of financial misconduct and diversion of to Clime, the brothers were also restrained from holding key managerial roles or dealing in securities due to violations of securities laws, including but not limited to siphoning of interim Sebi report indicated fund diversion and governance failures within the company. The Jaggis face allegations of misuse of term loans availed by Gensol from state-run Indian Renewable Energy Development Agency (Ireda) and Power Finance Corp (PFC).Between FY22 and FY24, Gensol secured Rs 977.75 crore in loans from Ireda and PFC, with Rs 663.89 crore meant for purchasing 6,400 EVs.'Moreover, the media reports also revealed that the respondents ceased operations and faced salary payment delays, indicating severe financial instability. It was also discovered that the respondents were attempting to not only siphon its funds but also transfer their ride-sharing business, including the leased EVs, to third parties without Clime's consent which is in violation of the lease agreement,' Seth stated in his petition. Thus, Clime was 'compelled' to terminate the lease agreement due to the several non-compliances and material defaults, the counsel added.
Mint
29-04-2025
- Automotive
- Mint
Delhi High Court bars Gensol from transferring 95 EVs, appoints receiver for their upkeep
The Delhi High Court has barred Gensol Engineering Ltd and BluSmart Mobility Pvt Ltd from selling, transferring, or creating third-party rights for 95 electric vehicles (EVs) leased to them by climate finance company Clime Finance Private Limited. Justice Jyoti Singh, while issuing a notice to Gensol, BluSmart, and their promoters on Tuesday, directed said a court-appointed receiver would take custody of the EVs to ensure their upkeep, especially battery maintenance. No one appeared for Gensol at the hearing. 'This court deems it appropriate to appoint a receiver, who shall take charge of the vehicles and ensure that they are properly charged to avoid drainage of the batteries,' the court said. However, the cars will not be moved from their current locations. The court also ordered the EV company not to obstruct the receiver's work. 'In case of any obstruction, it will be open to the receiver to take police assistance from the local police station, which shall render full cooperation,' the court said. The receiver's fee was fixed at ₹ 5 lakh, with a mandate to submit periodic reports on the condition and upkeep of the vehicles. Clime Finance moved the high court under the Arbitration and Conciliation Act on Tuesday, saying it had leased 95 Tata Xpres-T electric vehicles to Gensol entities in 2022 for cab and ride-share services for three years. Clime said Gensol and BluSmart had defaulted on lease payments, due in March 2025. It also raised concerns that BluSmart had ceased operations, putting the fleet at risk. Clime asserted that its contracts allowed it to repossess the vehicles in the event of a default. The company claimed 'absolute and paramount rights' over the EVs, saying the leases stood terminated. 'These leases have been terminated, and Sebi has also initiated an inquiry against the respondent, Mr. Puneet Jaggi. I am requesting that, until the matter is resolved, they be restricted from alienating or dealing with the vehicles,' Clime's counsel told the court. 'These are electric vehicles, and if their batteries are not maintained, they will get drained, causing irreversible damage... I'm not requesting possession at this stage, but at least the receiver should take adequate steps to preserve the cars,' he added. The court will hear the case next on 24 July. This is the second legal blow in a week for Gensol and BluSmart over leased EVs. On 25 April, Justice Jyoti Singh barred the firms from creating third-party rights for 175 electric vehicles leased to them by Japanese financial services firm Orix, which alleged that Gensol breached lease terms and failed to make payments. Founded in 2019 by Anmol Singh Jaggi, Puneet Singh Jaggi, and Punit K Goyal, BluSmart positions itself as India's first all-electric ride-hailing platform. As of January, it claimed a fleet of more than 8,500 EVs, 5,800 charging points across 50 hubs, and more than 10,000 active drivers. Sebi recently issued a show-cause notice to the company over alleged governance lapses, including undisclosed related-party transactions and alleged financial irregularities. The markets regulator also barred the Jaggi brothers from holding key managerial roles in any listed entity and restricted both Gensol and its promoters from accessing capital markets. Gensol is also under scrutiny for its handling of approximately ₹ 978 crore of loans from Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA), meant for procuring 6,400 EVs. Disclosures suggest only 4,704 vehicles were actually purchased. PFC has filed a complaint with the Economic Offences Wing of the Delhi police, alleging submission of falsified documents. IREDA, believed to have funded 3,400 of the EVs, may be more than 1,400 vehicles short, based on regulatory filings. Mint previously reported that PFC was exploring legal recourse, including proceedings in insolvency courts and debt recovery tribunals, to recover its dues. Meanwhile, BluSmart has temporarily shut down its app, notifying users that bookings have been paused until 7 May. In an email to customers, the company promised refunds within 90 days if services remained suspended beyond that date. First Published: 29 Apr 2025, 01:13 PM IST
