BluSmart Cabs Lease Dispute: Delhi HC Steps in to Safeguard 95 EVs Amid Financial Crisis

The Delhi High Court on Tuesday appointed a receiver to take custody 95 electric vehicles (EVs) given on lease to BluSmart Cabs by Clime Finance Private Limited. The receiver will ensure the upkeep of those EVs, especially battery maintenance. It also restricted crisis-hit Gensol Engineering from creating a third-party rights over the fleet.

“This court deems it appropriate to appoint a Receiver, who shall take charge of the vehicles and ensure that they are properly charged to avoid drainage of the batteries,” said Justice Jyoti Singh, while issuing the order in the court today.

She clarified that the court-appointed receiver will not remove the cars from where they are parked currently and will only take deemed custody, according to a report published by the Bar and Bench.

“In the case of any obstruction, it will be open to the receiver to take police assistance from the local police station, which shall render full cooperation,” the court said. It also ordered the EV company not to intervene in the receiver’s work.

The court will now hear the matter on July 24.

Gensol-BluSmart Lease Payments Case

Clime Finance, the petitioner, moved the high court under the Arbitration and Conciliation Act on Tuesday. In 2022, Clime had leased 95 Tata Xpres-T electric vehicles to Gensol entities for cab and ride-share services for three years. And the duo --- Gensol and BluSmart --- defaulted on lease payments which were due in March 2025.

Clime also expressed concerns over reports that BluSmart had halted its operations, potentially jeopardising the leased EV fleet. Citing contractual terms, the company said it had the right to reclaim the vehicles upon payment default. It asserted full ownership rights, declaring the lease agreements null and void.

Its counsel told the court that these leases have been terminated and sebi (Securities and Exchange Board of India) has started inquiry against the respondent 'Puneet Jaggi'. "I am requesting that, until the matter is resolved, they be restricted from alienating or dealing with the vehicles,” said Clime’s counsel as quoted by the publication.

“These are electric vehicles, and if their batteries are not maintained, they will get drained, causing irreversible damage... I’m not requesting possession at this stage, but at least the receiver should take adequate steps to preserve the cars,” he added.