Delhi High Court directs Gensol to handover remaining EVs to Smas Auto leasing

The order came after Smas Auto approached the court to secure 164 EVs that had been leased out to Gensol in 2021.

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The Delhi High Court has directed Gensol Engineering’s resolution professional to cooperate in handing over the remaining electric vehicles (EVs) to Smas Auto Leasing India and to provide a no-objection certificate for the same. The court also asked the resolution professional to take necessary steps for the transfer of ownership of the EVs in favour of the leasing company, according to Economic Times. Justice Jyoti Singh, in her order, said Gensol must not create any hindrance or obstruction in the handover process. “In case any obstruction is created, the court-appointed receivers will be at liberty to seek police assistance,” she said, adding that station house officers of the concerned police stations must render complete support if approached. The order came after Smas Auto approached the court to secure 164 EVs that had been leased out to Gensol in 2021. Senior counsel Rajshekhar Rao, appearing for Smas Auto, informed the court that a court-appointed receiver had already taken possession of 158 EVs, while eight vehicles were yet to be retrieved.

Master lease agreement between Smas Auto and Gensol
In 2021, Smas Auto and Gensol entered into a master lease agreement under which the latter leased EVs and availed fleet management services. Following Gensol’s failure to pay its lease dues, Smas moved the Delhi High Court in May this year seeking protection and preservation of the leased EVs, which required regular operation and maintenance. The court had previously granted this relief.

The legal proceedings come amid wider regulatory scrutiny of Gensol and its promoters. On April 15, the Securities and Exchange Board of India (Sebi) barred Gensol’s promoters — brothers Anmol and Puneet Jaggi — from accessing the capital markets and ordered a forensic audit into their listed renewable energy firm.

Subsequently, the Jaggi brothers were detained under the Foreign Exchange Management Act (Fema) on charges of financial misconduct and diversion of funds. An interim Sebi report found indications of fund diversion and governance lapses within the company.

The promoters are facing allegations of misuse of term loans obtained from state-run Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC). Between FY22 and FY24, Gensol secured ₹977.75 crore in loans from the two lenders, of which ₹663.89 crore was earmarked for purchasing 6,400 EVs.