The Delhi High Court has ordered the seizure of 76 additional electric vehicles leased to Gensol Engineering and BluSmart, intensifying the legal and financial troubles facing both firms. With this latest order, the total number of EVs under judicial protection has risen to 698, following allegations of lease defaults and fraud involving Gensol and its promoters.
In its 5th ruling within three weeks, the Delhi High Court restrained Gensol, BluSmart, and their promoters from transferring or selling 76 Tata Tigor EVs leased by Vriksh Advisors. The court also appointed a receiver to take possession of the vehicles and ensure their safekeeping, as per news reports.
The seizure was prompted by Vriksh Advisors’ petition alleging lease rental defaults by Gensol and concerns over ongoing investigations into alleged fraud and fund siphoning by the company and its key promoters, Anmol Singh Jaggi and Puneet Singh Jaggi.
Justice Jasmeet Singh cited multiple reports of regulatory probes and financial mismanagement. The court noted that one of Gensol’s promoters had been detained by the Enforcement Directorate for suspected illegal foreign exchange transactions and highlighted Gensol’s failure to pay lease rentals for April.
In its order, the court concluded that there was a “reasonable apprehension” that Gensol could dispose of or create third-party rights over the leased vehicles, justifying the need for repossession.
This is the latest in a series of seizure orders:
Also Read:Gensol Share Price Hit 5% Upper Circuit for 2nd Straight Day After Exit of Jaggi Brothers
Gensol is currently under scrutiny by multiple agencies. SEBI has barred both Anmol and Puneet Jaggi from holding positions in listed firms or accessing capital markets, citing serious governance and financial lapses, including undisclosed related-party transactions.
Investigations have also uncovered discrepancies in the use of ₹978 crore in loans from Power Finance Corporation and IREDA meant for 6,400 EVs, while filings show only 4,704 vehicles were acquired.
The National Company Law Tribunal (NCLT) will hear an insolvency petition filed by the Indian Renewable Energy Development Agency (IREDA) against Gensol Engineering on June 3. PFC has separately filed a complaint with Delhi Police’s Economic Offences Wing, alleging forged documentation in the loan process.
On May 16, 2025, shares of Gensol Engineering (NSE: GENSOL) opened at ₹65.56, higher than its previous close at ₹62.44. At 4 PM, the share price of Gensol Engineering was trading at ₹65.56, up by 5% on the NSE.
With 698 electric vehicles now under court protection, Gensol and BluSmart face mounting legal and regulatory scrutiny. As insolvency proceedings begin and investigations intensify, the future of the companies and their operational fleet hangs in the balance.
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Published on: May 16, 2025, 5:41 PM IST
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