The Delhi High Court has issued a directive requiring Gensol Engineering’s resolution professional to hand over the remaining electric vehicles (EVs) to Smas Auto Leasing India, ensuring a smooth transfer of ownership and uninterrupted fleet operations. The order comes amid ongoing legal and regulatory scrutiny of Gensol and its promoters for alleged financial irregularities.
Background of the Case
In 2021, Smas Auto and Gensol Engineering entered into a master lease agreement involving the lease of EVs along with fleet management services. However, Gensol failed to pay its lease dues, prompting Smas Auto to move the court in May 2025, seeking protection and preservation of the leased vehicles. These vehicles, critical to Smas Auto’s operations, required routine maintenance and active deployment to maintain their value.
The court had earlier granted interim relief to Smas Auto to prevent misuse or obstruction of the EVs.
Court Orders and Compliance
The recent court ruling, delivered by Justice Jyoti Singh, emphasized that Gensol must not create any hindrance during the handover process. In the event of obstruction, the court-appointed receivers have been authorized to seek police assistance, with local station house officers directed to provide full support to ensure compliance.
This legal step ensures that Smas Auto can secure the leased EVs, continue fleet operations, and protect its contractual rights.
Broader Context
The proceedings form part of an ongoing investigation into Gensol Engineering and its promoters, who are alleged to have engaged in financial misconduct and diversion of funds, including loans allocated for EV-related projects. Previous rulings by the Delhi High Court have restricted Gensol and associated entities from creating third-party claims on leased EVs, safeguarding the interests of leasing companies like Smas Auto.
The latest order reflects the judiciary’s proactive stance in protecting corporate lease agreements and supporting the growth of India’s electric mobility sector by ensuring that fleet operators retain control over leased EV assets.
Click Here to get the latest EV news and exclusive updates from EV Mechanica on WhatsApp!