**Delhi High Court Orders Seizure of 129 Electric Vehicles Amid Loan Dispute**
The Delhi High Court has mandated the seizure and relocation of 129 electric vehicles leased by Gensol Engineering and ride-hailing company BluSmart, following a petition from lender STCI Finance. The lender accused the companies of defaulting on a ₹15 crore equipment loan and attempting to unlawfully dispose of the financed assets.
In her ruling on Thursday, May 8, Justice Manmeet Pritam Singh Arora prohibited Gensol and BluSmart from establishing any third-party rights over the vehicles. Citing an urgent risk of asset dissipation, the court appointed receivers to take custody of the vehicles and authorized them to arrange for their maintenance and charging to prevent deterioration.
Additionally, the court instructed ICICI Bank to maintain the status quo on a fixed deposit of ₹40.62 lakh, which STCI Finance claims was created by Gensol as security for the loan. The vehicles were financed under a loan agreement dated October 19, 2023, with funds disbursed directly to vendors. Gensol subsequently leased the vehicles to BluSmart, a related party that has since ceased operations. After the loan defaults and a credit downgrade, STCI recalled the loan on April 29, 2025, and is now seeking to recover ₹11.25 crore.
The court also acknowledged findings from the Securities and Exchange Board of India (Sebi), which alleged that Gensol’s promoters had diverted company funds and treated the listed entity as a proprietary concern, violating corporate governance norms.
**Series of Court Orders**
This ruling marks the fourth in a series of court orders issued by the high court in less than two weeks, aimed at protecting a growing fleet of leased electric vehicles that are allegedly at risk. Just a day prior, on May 7, the court prohibited Gensol, BluSmart, and their promoters from creating third-party rights over an additional 220 EVs leased from two separate lessors—SMAS Auto Leasing India Pvt. Ltd and Shefasteq OPC Pvt. Ltd. Both lessors have accused the companies of breaching lease agreements and defaulting on payments.
On April 25, the court had already restrained Gensol and BluSmart from alienating 175 EVs leased from Japanese financial services firm Orix, followed by another order on April 29 that barred BluSmart from transferring or selling 95 EVs leased from Clime Finance Pvt. Ltd. With the latest directive, a total of 622 leased electric vehicles are now under judicial protection, with the court explicitly prohibiting their sale, transfer, or assignment to third parties.
**Mounting Financial and Regulatory Pressures**
These legal challenges come amid increasing regulatory scrutiny. Sebi has recently issued a show-cause notice to Gensol and its promoters for alleged corporate governance violations, including undisclosed related-party transactions and financial irregularities.
—
**FAQ**
**What actions has the Delhi High Court taken regarding Gensol and BluSmart?**
The Delhi High Court has ordered the seizure of 129 electric vehicles leased by Gensol and BluSmart due to allegations of loan default and asset mismanagement.
