Delhi High Court Orders Seizure 129 EVs Leased by Gensol, BluSmart Over Loan Default

The Delhi High Court has ordered the seizure of 129 electric vehicles leased by Gensol Engineering and ride-hailing platform BluSmart, following a loan default petition filed by lender STCI Finance. The court cited the risk of asset dissipation and barred the creation of third-party rights over the vehicles, as per news reports. 

Court Seizes Vehicles After Loan Default by Gensol, BluSmart 

STCI Finance has alleged that Gensol and BluSmart defaulted on a ₹15 crore equipment loan disbursed in October 2023. The vehicles financed under this agreement were subsequently leased to BluSmart, a related entity that has since suspended operations. According to the lender, both companies attempted to unlawfully dispose of the financed assets.

Acting on these concerns, the Delhi High Court appointed receivers to take custody of the electric vehicles and authorised them to arrange for their maintenance and charging to prevent deterioration. In addition, the court ordered ICICI Bank to maintain the status quo on a fixed deposit of ₹40.62 lakh, which had been pledged as collateral for the loan. Following the loan recall on April 29, 2025, STCI Finance is now seeking to recover ₹11.25 crore. 

Also Read: Gensol Files Appeal with SAT Against SEBI’s Interim Order. 

Series of Judicial Orders Shields Over 600 EVs 

This order adds to a series of court interventions protecting leased EVs from potential misappropriation by Gensol and BluSmart. 

• On April 25, the court barred the alienation of 175 EVs leased from Orix.
• On April 29, it restrained BluSmart from transferring 95 EVs leased from Clime Finance.
• On May 7, 220 more EVs leased from SMAS Auto Leasing and Shefasteq OPC were put under similar protection.
• In total, 622 electric vehicles are now under judicial protection. 

Regulatory Scrutiny Adds to Pressure on Gensol 

The legal proceedings unfold against the backdrop of broader regulatory scrutiny of Gensol’s financial practices. The Securities and Exchange Board of India (SEBI) has issued a show-cause notice to the company and barred its promoters from holding leadership positions in any listed firms. The allegations involve undisclosed related-party transactions and the misuse of funds.

Gensol is also under investigation for the alleged misappropriation of ₹978 crore in loans sanctioned by the Power Finance Corporation (PFC) and the Indian Renewable Energy Development Agency (IREDA) for the purchase of 6,400 electric vehicles, of which only 4,704 have reportedly been procured. In response, PFC has complained to the Economic Offences Wing of the Delhi Police, citing the use of forged documents to obtain the loans. 

Gensol Share Price  

On May 9, 2025, Gensol Engineering share price (NSE: GENSOL) opened at ₹56.79, lower than its previous close at ₹59.78. On the same day Gensol Engineering’s share price closed at ₹56.79, down by 5% on the NSE. 

Conclusion 

With rising legal and regulatory pressure, Gensol and BluSmart face mounting hurdles in retaining control of their EV fleet. Court orders now safeguard hundreds of vehicles as investigations unfold. 

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