Athira Sethu
Kochi, 15 May 2025
India-based electric taxi service BluSmart is in a tight spot. Last month, the firm was compelled to shut its services after the promoters of its parent company were charged with financial misconduct. Now, a few banks and leasing companies that had lent electric vehicles (EVs) to BluSmart now want to sell them so that they can get back their money.
Reports indicate that between 1,500 to 2,000 EVs are currently being put up for sale. These cars were leased or financed to BluSmart, and some of the lenders have already repossessed their vehicles. Numerous groups, ranging from banks to non-banking finance companies and even individuals, are seeking to purchase or sell these vehicles.
Certain leasing companies are not selling the vehicles immediately. Rather, they are willing to provide these EVs on lease to other companies. Two of the prospective new users are Evera and Everest Fleet. Evera is an electric taxi company based in Delhi that already owns 300 EVs. It is looking to lease another 800 to 1,000 vehicles. Everest Fleet, backed by Uber, is also keen.
In the background, a number of lenders have approached the Delhi High Court. They wish to ensure that BluSmart or its parent entity Gensol Engineering does not sell or transfer the vehicles to another entity without authorization.
BluSmart had approximately 8,000 EVs in total. About 5,000 of these were owned or leased by Gensol Engineering and then transferred to BluSmart. The government-funded financial groups such as Power Finance Corporation and the Indian Renewable Energy Development Agency are now contemplating selling the EVs through auction. They had provided loans to BluSmart to purchase these vehicles.
The troubles started after India’s financial watchdog SEBI barred Gensol’s founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from trading through the stock market. They were charged with misusing funds belonging to the company and forging documents.
Briefly, BluSmart is in huge trouble, and most firms are attempting to retrieve their cash by selling or leasing the EVs. The fate of BluSmart now relies on how things are managed here and whether other firms come in to acquire the cars or the firm.
