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Informist, Wednesday, Jun. 11, 2025

 

NEW DELHI – The Delhi High Court on Wednesday directed police officials to assist the court-appointed receiver in taking the possession of 95 Tata Xpres electric vehicles leased by Clime Finance Ltd. to Gensol Engineering Ltd., BluSmart Fleet Pvt. Ltd. and BluSmart Mobility Pvt. Ltd. Clime Finance had said that it got possession of only one electric vehicle and police authorities were not assisting them for other vehicles leased to Gensol Engineering and others.

 

On Apr. 29, the high court had restrained Gensol Engineering and others from creating third-party rights in respect of 95 electric vehicles. The court had appointed a receiver to secure, preserve, inspect, and take immediate possession of the 95 electric vehicles. 

 

The case has its genesis from a lease agreement, under which 95 electric vehicles were leased to Gensol Engineering and others in 2022 by Clime Finance for use in cab and ride-share services for a period of 36 months, which was to expire in May 2025. The respondents defaulted in remitting the lease rentals for the 95 vehicles from March, the petitioner said. This default, along with a downgrade in Gensol Engineering's credit rating, media reports of financial distress, and breaches of lease agreement, prompted the petitioner to issue notices in March and April, also went unanswered, Clime Finance alleged.  

 

The petitioner discovered that the respondents were attempting to not only siphon its funds but also transfer their ride-sharing business, including the leased electric vehicles, to third parties without its consent. In view of the above, the petitioner was compelled to issue a notice to the respondents terminating the lease agreement due to the several non-compliances and material defaults of the terms and conditions.

 

Further, the petitioner sought pre-termination value, penal charges and tax deducted at source due for 2024-25 (Apr-Mar) after adjustment of security deposit of INR 10.07 million. In terms of the lease agreement, the respondents are obliged to surrender the electric vehicles to them, said the petitioner.

 

In April, the Securities and Exchange Board of India said it was probing Gensol Engineering and its promoters for diverting loans taken from Power Finance Corp. Ltd. and Indian Renewable Energy Development Agency Ltd. The regulator also issued an interim order against Gensol Engineering and its promoter directors Anmol Singh Jaggi and Puneet Singh Jaggi, barring them from any securities market-related activity and from holding the post of director or any key managerial position in the company till further orders. Meanwhile, two benches of the National Company Law Tribunal are hearing insolvency petitions against Gensol Engineering and its arms Gensol EV Lease Ltd. and Gensol Electric Vehicles Pvt. Ltd.
 

On Wednesday, shares of Gensol Engineering ended 2% lower at INR 51.42 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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