Lenders Rush to Sell BluSmart EVs After Suspension; Gensol in Legal Tangle

Following the suspension of ride-hailing company BluSmart, several lenders and leasing firms are working to sell or re-lease 1,500 to 2,000 electric vehicles (EVs). BluSmart shut down operations in April after failing to raise funds amid serious allegations of financial wrongdoing by its founders.

These vehicles were either financed or leased through BluSmart’s associated entity, Gensol Engineering. Now, banks, non-banking financial companies (NBFCs), investment platforms, and leasing firms are trying to recover their money. Some have already taken back the cars, while others are looking for buyers.

New Operators Show Interest in BluSmart

Delhi-based electric taxi operator Evera has already taken 300 EVs and is in talks to lease 800–1,000 more. Uber-backed Everest Fleet is also evaluating the option of acquiring some of the vehicles. Smaller fleet operators are also being approached.

As per news reports, some lessors who lease such cars regularly. But institutions like banks just want to sell and recover their dues.

Gensol and Legal Disputes

Many of these EVs were owned or leased by Gensol Engineering and then sub-leased to BluSmart. Now, several leasing companies — including Japan’s Orix Leasing, Clime Finance, SMAS Auto Leasing, and Bengaluru-based Shefasteq — have moved the Delhi High Court. They want to block BluSmart or Gensol from creating third-party rights or transferring ownership of the vehicles.

Vehicle Condition a Worry

If EVs are not used or charged regularly, their battery performance could drop, making them unusable. As per news reports, buyers are waiting for a price drop — some are quoting just 10% of the original cost.

Failed Deal, Shift to Uber 

Before its shutdown, BluSmart and Gensol had agreed to sell nearly 3,000 EVs to Refex Industries. The deal fell through in March, partly because it required the cars to remain listed with BluSmart. Meanwhile, BluSmart has reportedly started operating as a fleet provider for Uber.

Conclusion 

With BluSmart’s collapse and Gensol Engineering facing legal and financial scrutiny, the fate of its large EV fleet is uncertain. If not put back to use soon, these depreciating assets could lose all value.
 
Read more on: 5 Red Flags to Identify and Avoid Stocks Like Gensol Engineering. 

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