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Business Standard
29-04-2025
- Automotive
- Business Standard
Delhi HC appoints receiver for 95 EVs leased to BluSmart amid dispute
The Delhi High Court on Tuesday appointed a 'receiver' to take custody of 95 electric vehicles leased to BluSmart Cabs by Clime Finance Private Limited. The court also placed a restraint on Gensol, preventing the creation of third-party rights over the fleet, LiveLaw reported. Justice Jyoti Singh, who passed the order, deemed it necessary to appoint a receiver to manage the leased electric vehicles. The receiver's role is limited to overseeing the proper maintenance of the vehicles, including ensuring they are adequately charged to avoid battery drainage. However, the court clarified that the receiver would not physically remove the cars from their current parking locations but would take 'deemed custody' of them, the news report said. 'The receiver will take charge of the vehicles and ensure that they are properly charged to avoid drainage of the batteries,' Justice Singh said, adding that the receiver should not remove the vehicles but only manage their upkeep. Lease dispute over EV fleet The case was brought before the court under Section 9 of the Arbitration and Conciliation Act, 1996. Clime Finance, the petitioner, leased 95 Tata electric vehicles to Gensol entities in 2022 for use in BluSmart's cab and ride-share services. Clime Finance argued that it had 'absolute and paramount rights' over the vehicles for the duration of the three-year lease. Clime Finance claimed that Gensol and BluSmart had defaulted on lease rental payments due in March 2025, leading to the issuance of legal notices. The petitioner also expressed concerns that Gensol and BluSmart had ceased operations, potentially leaving the leased fleet unprotected. Clime Finance further asserted its contractual rights to repossess the vehicles in case of default, the news report said. Court's interim directions After hearing the arguments, the Delhi High Court restrained Gensol and BluSmart from selling, alienating, or creating third-party rights over the 95 Tata electric vehicles. It granted the receiver authority to maintain the vehicles, including ensuring they are periodically charged, but prohibited physical possession or removal. The court instructed Gensol and BluSmart not to interfere with the receiver's duties, with police assistance available if needed. Additionally, the receiver's fee was set at ₹5 lakh, and periodic reports on the vehicles' condition and maintenance were mandated. The case will be taken up again in July for further proceedings. Previous court order on Orix-leased vehicles Last week, the court had issued a similar order restraining Gensol Engineering Limited and BluSmart Mobility from alienating or creating third-party rights over 175 electric vehicles leased to them by Japanese financial services giant Orix. BluSmart Mobility, India's first all-electric ride-hailing service, operates differently from traditional models. Instead of vehicle owners or drivers financing their cars, BluSmart leases its fleet from financiers like Orix. Drivers are employed on a salaried basis, and BluSmart is responsible for the fleet's management, including charging infrastructure and maintenance. Regulatory scrutiny on Gensol Engineering This comes amid increasing regulatory scrutiny on Gensol Engineering. Earlier this month, the Securities and Exchange Board of India (Sebi) issued a show cause notice to Gensol, accusing the company of corporate governance violations, including failure to disclose related-party transactions with BluSmart and other group companies. Sebi also launched an investigation into discrepancies in Gensol's financial statements, including concerns over revenue recognition practices and inadequate disclosures regarding contingent liabilities. Additionally, certain Gensol officials have been barred from accessing the securities market while the investigation continues. The regulatory action has caused considerable volatility in Gensol's stock, impacting investor sentiment.
Time of India
29-04-2025
- Business
- Time of India
Delhi HC appoints receiver to take charge of 95 EVs given to Gensol, BluSmart by Clime Finance
The Delhi High Court on Tuesday appointed a receiver to take charge of the 95 electric vehicles that were leased to Gensol and BluSmart by Clime Finance . #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" Justice Jyoti Singh, however, said that the appointed receiver will only take deemed charge and is not allowed to move the vehicles from its existing spot. The Clime Finance had asked in its petition that Gensol and BluSmart should be restrained from selling, alienating, transferring, or encumbering or in any manner creating third party rights in respect of the 95 Tata Xpres Electric Vehicles. "Appoint an officer of the Petitioner or any other officer as a Receiver with powers to enter upon any premises where the said EV s are situated, and direct the Respondents to cooperate with the Receiver by giving the locations of the said EV s to secure, preserve, inspect and take immediate physical possession of all 95 electric vehicles," Clime Finance had said in its petition. EV calculator How much will I save if I choose an electric vehicle? SELECT vehicle type Calculate The Clime Finance had also requested the HC to direct the Receiver to take adequate steps to preserve and maintain the said EV s in good working condition and hand over their custody to them. The shares of Gensol Engineering tanked 5 per cent to hit a fresh lower circuit limit on Tuesday due to ongoing crisis at the firm. The stock of the firm dropped 4.97 per cent to Rs 82.20 -- the lowest trading permissible limit for the day as also its 52-week low on the BSE. Live Events Earlier, market regulator Securities and Exchange Board of India (Sebi) had barred Gensol's promoters, Anmol and Puneet Jaggi, from accessing stock markets and ordered a forensic probe into their listed renewable energy firm. On Thursday, the brothers were detained under the Foreign Exchange Management Act (Fema) on charges of financial misconduct and diversion of funds. An 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. (with ET Bureau's Indu Bhan's inputs)
