Delhi HC Issues Contempt Notices To Blu-Smart, Gensol Entities Over Leased EVs

The Delhi High Court on Wednesday issued contempt notices to BluSmart Fleet Pvt. Ltd., Gensol EV Lease Pvt. Ltd., Gensol Engineering Ltd.'s founders Anmol Jaggi and Puneet Singh Jaggi, and others for allegedly defying a court order related to leased electric vehicles.

The court was hearing a petition by lessor Shefasteq (OPC) Pvt. Ltd., which claimed that the respondents failed to comply with the court’s 7 May order. The court had restrained BluSmart Fleet and others from selling or transferring 10 Tata Tigor electric vehicles leased by the petitioner. It also directed the appointment of a receiver to take custody of the vehicles and instructed the respondents to disclose their location within two days and not to relocate them.

Shefasteq said the respondents had not complied with the directions. According to the receiver’s report, the respondents’ known locations, including showrooms and service centres, were found vacated and the vehicles could not be traced. The petitioner added that Go Auto Pvt. Ltd., a related party in the matter, has refused to cooperate. Its director claimed the company was not legally obligated to share any details about the vehicles.

The case stems from a failed investment arrangement in which Shefasteq entered into a vehicle lease agreement with BluSmart Fleet and a services agreement with Gensol EV Lease. Under the arrangement, Go Auto was to procure electric vehicles for the petitioner, which would then be delivered to BluSmart Fleet for exclusive operation, with fixed monthly rentals paid to the petitioner.

The vehicles were expected to be delivered and operational in BluSmart’s fleet by December, or at the latest January. However, while the petitioner awaited delivery, it learnt in April of a financial crisis at BluSmart Fleet and Gensol EV Lease. Shefasteq feared Go Auto might divert the vehicles to Gensol EV Lease or another related entity, or even sell them off.

The case comes amid an ongoing investigation by the Securities and Exchange Board of India into Gensol Engineering and its promoters for alleged diversion of loans from Power Finance Corp. Ltd. and Indian Renewable Energy Development Agency Ltd. Last month, the regulator barred the company and its promoter-directors, Anmol and Puneet Jaggi, from any activity related to the securities market or holding key managerial roles until further notice.