The Delhi High Court has appointed a receiver to take deemed custody of 95 electric vehicles leased by Clime Finance to Gensol Engineering and BluSmart Mobility. This decision follows allegations of lease payment defaults and concerns over the potential misuse of the vehicles.
Justice Jyoti Singh, presiding over the case, clarified that the receiver’s role is limited to overseeing the maintenance of the vehicles, ensuring they remain charged to prevent battery degradation. The vehicles are not to be moved from their current locations.
Clime Finance had entered into a three-year lease agreement in 2022, providing 95 Tata Xpres-T electric vehicles to Gensol and BluSmart for ride-hailing services. The lease is set to expire in May 2025. Clime alleges that lease payments due in March 2025 were not made, prompting legal action.
The court has restrained Gensol and BluSmart from selling, transferring, or creating third-party rights over the leased vehicles. Additionally, the receiver’s fee has been set at ₹5 lakh, with a mandate to submit periodic reports on the condition and upkeep of the vehicles.
This legal action comes amid broader regulatory scrutiny of Gensol Engineering. The Securities and Exchange Board of India (SEBI) has barred Gensol’s promoters, Anmol and Puneet Jaggi, from accessing stock markets and has initiated a forensic probe into the company’s operations. The brothers were recently detained under the Foreign Exchange Management Act (FEMA) on charges of financial misconduct and fund diversion.
The case is scheduled for further hearing on July 24, 2025. The court’s intervention underscores the importance of maintaining contractual obligations and the legal mechanisms available to address disputes in the rapidly evolving electric vehicle sector.
