On Tuesday, the Delhi High Court ordered a status quo on 95 additional electric vehicles (EVs) leased to Gensol Engineering and its ride-hailing subsidiary BluSmart Mobility, following a petition by Clime Finance Pvt Ltd, the lessor. The court also appointed a receiver to take custody of the vehicles and ensure their maintenance, especially battery upkeep.
Justice Jyoti Singh, presiding over the case, barred Gensol and BluSmart from selling, transferring, or creating third-party rights over the EVs. The companies are also prohibited from interfering in the receiver’s responsibilities. The court authorized the receiver to seek police assistance if needed.
Clime Finance approached the court under Section 9 of the Arbitration and Conciliation Act, citing default in lease payments for 95 Tata EVs provided in 2022. The leases were for a three-year term but have since been terminated due to non-payment in March 2025. Clime emphasized the risk of battery degradation if the vehicles remain idle and requested interim protection rather than possession.
This case follows a similar petition filed last month by Orix, a Japanese financial services firm, regarding 175 EVs leased to the same companies. The court had then also restricted Gensol and BluSmart from alienating the vehicles. Orix has claimed lease breaches amounting to ₹4 crore and is preparing for arbitration, with Anmol Singh Jaggi listed as guarantor.
These legal troubles arise amid BluSmart suspending its operations across Delhi-NCR, Bengaluru, and Mumbai, following SEBI’s action against co-founders Anmol and Puneet Jaggi for alleged fraud. SEBI barred them from market participation and holding positions in listed companies. The next hearing in Clime’s case is scheduled for July 24.
