Delhi HC Bars Gensol, BluSmart From Creating Third-Party Rights On 220 EVs

The Delhi High Court has restrained Gensol Engineering and BluSmart Mobility from creating any third-party rights on 220 electric vehicles at the center of a financial dispute. The interim order came on a petition filed by financiers alleging default on lease agreements worth ₹110 crore. Justice Jasmeet Singh directed both companies to maintain status quo on the EVs until the next hearing, while allowing their continued commercial operation. The case highlights growing pains in India's EV ecosystem as operators balance rapid expansion with financial sustainability. Gensol and BluSmart have contested the default claims, arguing temporary cash flow issues due to delayed subsidy payments. The court's decision protects lender interests while ensuring EV fleet operations aren't disrupted during litigation. This ruling may prompt stricter due diligence in EV financing deals and more robust contract structures in the emerging electric mobility sector.