New Delhi: The Delhi high court on Friday barred Gensol Engineering Ltd and BluSmart Mobility from creating third-party rights over 175 electric vehicles (EVs) that were leased to them by Japanese financial services firm Orix.
Orix had moved the court under the Arbitration and Conciliation Act, seeking interim measures to prevent the sale or use of the vehicles as collateral after non-payment of dues by Gensol and breach of contract related to the leased EVs.
As per Orix’s plea, the company had entered into lease agreements with both Gensol Engineering and BluSmart Mobility as part of a green mobility push. The 175 EVs were leased to support BluSmart’s ride-hailing operations in India. Anmol Singh Jaggi, co-founder of both firms, served as guarantor for the lease obligations.
Besides seeking interim measures to prevent the sale or use of the vehicles as collateral, Orix also informed the court that arbitration proceedings would be initiated as per the dispute resolution clause in the agreements.
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This legal dispute comes as Gensol faces regulatory scrutiny. The Securities and Exchange Board of India (Sebi) recently issued a show-cause notice to the company for governance lapses, including undisclosed related-party transactions and alleged financial irregularities. Sebi also barred the Jaggi brothers from holding key managerial roles in any listed entity and restricted Gensol and its promoters from accessing capital markets.
Gensol is under fire for its handling of around ₹978 crore in loans from Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (Ireda) for purchasing 6,400 EVs. However, disclosures indicate that only 4,704 vehicles were procured.
PFC has lodged a complaint with the Economic Offences Wing (EoW) of the Delhi Police, alleging that Gensol submitted falsified documents. Ireda, believed to have funded 3,400 of the vehicles, may be short of over 1,400 cars, based on Sebi and PFC filings.
Mint earlier reported that PFC is weighing legal options, including action in insolvency courts and debt recovery tribunals, to recover its dues.
Meanwhile, BluSmart has temporarily shut down its app, informing users that bookings will be paused until 7 May. In an email to customers, the company promised refunds within 90 days if services remain suspended beyond that date.
As of January, BluSmart claimed a fleet of over 8,500 EVs, 5,800 charging points across 50 hubs, and more than 10,000 active drivers.
Founded in January 2019 by Anmol Singh Jaggi, Puneet Singh Jaggi, and Punit K Goyal, BluSmart positions itself as India’s first all-electric ride-hailing platform.
