Nearly 2,000 BluSmart EVs on the block as lenders, lessors look to recover money
BluSmart
, the ride-hailing platform that last month suspended operations indefinitely after failing to raise funds amid allegations of financial irregularities against its founders, people familiar with the matter said.
Banks and non-banking financial companies, investment platforms, climate financing institutions and even wealthy individuals are among those looking to sell these EVs they have financed or leased to BluSmart to recover their money, the people said. Some of them have already claimed possession of the vehicles. Leasing companies are also open to lease the vehicles to other operators.
Companies such as Delhi-based all-electric taxi service
Evera
and Uber-backed
Everest Fleet
have emerged as potential takers for blocks of these cars. While Evera has already
taken 300 EVs in its fleet
, it is in discussions to lease another 800-1,000 vehicles. Everest Fleet has also been in talks to acquire some of these cars, but hasn't closed a deal yet.
'There is a section of lessors who are in the business of leasing these cars, and they will find takers…but financial institutions like banks that want to recover their money want to sell these vehicles,' a person briefed on the developments said, adding: 'Several small fleet operators are also being approached.'
Multiple lessors including Japan's
Orix Leasing
, Delhi-based Clime Finance, automotive leasing firm SMAS Auto Leasing and Bengaluru-based Shefasteq OPC Pvt Ltd have moved the
Delhi High Court
to prevent BluSmart or its associated entity,
Gensol Engineering
, from creating any third-party rights on the vehicles they had supplied.
Live Events
'We are busy getting these assets back on the road, and multiple lenders are having discussions with us,' said Nimish Trivedi, cofounder and chief executive of
EV taxi
service Evera. 'We have finalised many agreements and are currently looking at strengthening airport operations with this fleet.'
Discover the stories of your interest
Blockchain
5 Stories
Cyber-safety
7 Stories
Fintech
9 Stories
E-comm
9 Stories
ML
8 Stories
Edtech
6 Stories
Also Read:
Ireda files insolvency plea against Gensol over Rs 510 crore default
Everest Fleet said the company is closely working with BluSmart's lenders and is evaluating the health and pricing of these vehicles. "As we look ahead, we will continue to take a measured approach aligned with operational viability and sector wide progress," founder and CEO Siddharth Ladsariya told ET.
When operational, BluSmart had around 8,000 electric cars in its fleet. Close to 5,000 of the vehicles were owned or leased from lessors by Gensol Engineering — these were then leased or sub-leased to BluSmart. The ride-hailing company also owned a few hundred EVs.
ET on April 21 reported that Power Finance Corp and
Indian Renewable Energy Development Agency
were considering a plan to auction the EVs that the company had acquired by taking loans from the two public sector financial institutions.
The developments follow action by the Securities and Exchange Board of India, which barred BluSmart cofounders Anmol Singh Jaggi and Puneet Singh Jaggi from accessing the securities markets over allegations of fund siphoning and document forgery in their solar engineering, procurement and construction firm, Gensol Engineering.
BluSmart and its cofounder Anmol Singh Jaggi did not respond to an email seeking comment.
Also Read:
Jaggi brothers resign from Gensol Engineering on Sebi order
Depreciating assets
Industry players in the EV sector say unless the parked assets are brought back into operation, they risk losing all value and becoming unusable.
'The situation on the ground remains that, if the batteries are not charged or put to use, and the cars are not driven, their performance will deteriorate and eventually they will become a liability,' a person in the EV space said.
People who are interested in buying these EVs are probably waiting for the prices to drop. 'All the traditional players in Delhi are looking at a value which is probably just 10% of the asset cost,' the person added.
Meanwhile, following the suspension of its operations in April, BluSmart began transitioning into becoming a fleet operator for rival ride-hailing platform
Uber
,
ET reported
first on April 14.
Prior to the Sebi order, Gensol Engineering had entered into an agreement with Chennai-based
Refex Industries
to sell 2,997 EVs to the latter but the deal was called off on March 28.
According to sources in the know, the deal was called off primarily because of the condition that the EVs must be listed on BluSmart, in addition to the ride-hailing company being non-committal on paying higher lease rentals than it did to Gensol Engineering. Officially, the companies had said at the time that the deal was terminated because of 'evolving commitments'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
Himachal Pradesh govt to get 18% royalty from Karcham Wangtu hydropower project
Shimla: The Supreme Court has directed JSW Energy Company to pay 18% royalty to the Himachal Pradesh govt instead of the previously agreed 12% for the 1,045 megawatt (MW) capacity Karcham-Wangtu hydro power project on the Satluj river in Kinnaur district. This decision will result in an annual additional income of approximately Rs 150 crore, stated the state govt in a press statement issued on Wednesday. Besides this, the Supreme Court decision will also be a milestone for other power projects that have completed 12 years, and the state govt hopes that this decision will bring an income of more than Rs 250 crore per year to the govt treasury. Chief minister Sukhvinder Singh Sukhu has been taking up the issue of royalty from the power projects on priority in a step to protect the state's rights over its natural resources. The Supreme Court's decision overturned the Himachal Pradesh High Court's May 2024 judgment, which allowed JSW Energy to pay only a 12% royalty. According to a 1999 agreement between the state govt and the company, royalties were set at 12% for the first 12 years of the project and 18% for the subsequent 28 years. After the project commenced operations in September 2011, the company paid the 12% royalty for 12 years but refused to pay the additional six per cent from Sept z2023. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like [속보]'한 달만에 5cm 성장!?' 2개월치 무료증정 압도적 키성장 1위! 아이클타임 더 알아보기 Undo The dispute thereafter reached the high court, which ruled in favour of the company. The state govt went in appeal before the Supreme Court, where the state govt also engaged leading legal senior advocates Kapil Sibal and Prag Tripathi, who were assisted by advocate general Anoop Kumar Ratan, reads the govt statement. Earlier, the current state govt got another success when the court decided in its favour the case pertaining to the Hotel Wild Flower Hall in Shimla district, which was embroiled in a legal dispute since 2002. In this case, a dispute was ongoing between the Himachal govt and a private hotel group over ownership and management rights. After the court's decision, this property has now again come under the control of the state govt, which will fetch additional revenue from this heritage property, said the govt spokesperson. MSID:: 122576237 413 |
Time of India
an hour ago
- Time of India
Rishad Premji flags unchanged IT outlook, focuses on AI push
Bengaluru: Wipro chairman Rishad Premji stated that the external environment is still volatile, highlighting macroeconomic pressures, tariff uncertainties, and evolving client priorities. "While the environment hasn't worsened, it hasn't improved significantly either. Clients are acclimatising to a world that is inherently more unpredictable," Premji said at the company's 79th annual general meeting (AGM) held virtually on Tuesday. Despite a 2.3% year-on-year decline in the 2024-25 financial year's IT services revenue (in constant currency) to $10.5 billion, Wipro reported a 18.9% rise in net income to Rs 13,140 crore and a 90-basis point expansion in operating margins to 17.1%. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru "The year was marked by disciplined execution and bold investments," Premji added. Wipro CEO Srini Pallia said AI is becoming central to how Wipro delivers value. "Clients want AI-powered solutions that deliver velocity, efficiency, and measurable business outcomes. Every major deal now has AI at its core," he said. Wipro won 63 large deals worth $5.4 billion in 2024-25 financial year including two mega deals. On the HR front, Wipro is doubling down on building future-ready talent. Nearly 87,000 employees completed advanced training in generative AI, while the company partnered with 63 colleges to redesign curricula and boost industry readiness among graduates. "We are building an AI-first workforce, starting with me," Premji said. Premji is betting big on the firm's AI-first strategy and deeper client engagement to navigate an uncertain global business environment. Attrition for the year stood at 15%, down from previous years, and the company's subcontractor workforce is steady at 9.5% of total headcount. Leadership development has also taken centre stage. "Through the Wipro Leadership Institute, we are identifying and fast-tracking high-potential talent into critical roles," Pallia said. Diversity and inclusion remain integral to Wipro's HR strategy. Women now comprise 37% of the overall workforce and 33% of its independent board members. The company was recognised as a DEI Lighthouse by the World Economic Forum this year. "We are creating a multi-generational, inclusive workplace. Flexibility, well-being, and tailored support have become core to our people's practices," Premji said. Wipro also designed a well-being framework addressing physical health, mental wellness, and work-life balance.
Time of India
an hour ago
- Time of India
Reduced budget for greenbelt upkeep triggers RWA backlash in Gurgaon
Gurgaon: GMDA's urban environment division has invited RWAs to take over the upkeep of greenbelts in front of their societies at the revised rate. But GMDA's recent move to reduce the greenbelt maintenance rate from Rs 4 to Rs 2.75 per square metre per month has not gone down well with RWAs, who say the new rate is not viable and does not reflect the rising cost of manpower, equipment and upkeep. RWAs pointed out the revision in the rate compromises the quality of upkeep in landscaped areas and might discourage resident-led maintenance efforts in the future. "We are willing to take up the maintenance since our portion of the greenbelt is small, but for larger areas, it is not feasible. Besides, GMDA must first develop the greenbelts. Most are either encroached upon or become a dumping ground," general secretary of Sector 9A Suraj Bhola said. Some RWAs also pointed out the disparity between GMDA and MCG standards. "MCG provides Rs 4.20 per sqm for park maintenance and even then we have to pitch in from our own funds," RWA president of Sector 46 Rajkumar Yadav said. "It seems GMDA is unaware of the real costs involved — manpower, equipment and inflation. RWAs are willing stakeholders, but only if authorities provide adequate financial support," Yadav said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo You Can Also Check: Gurgaon AQI | Weather in Gurgaon | Bank Holidays in Gurgaon | Public Holidays in Gurgaon The GMDA proposal — for the upkeep of greenbelts — followed a recent tender of Tau Devi Lal Park located in Sector 22, in which Rs 2.75 per sqm emerged as the lowest bid. GMDA has now offered the same rate to RWAs willing to take up similar work. As of now, there are around 140 MoUs signed between GMDA and RWAs, corporates and NGOs for the maintenance of greenbelts and parks. A senior official of GMDA said, "We started the tendering process for Tau Devi Lal Park and since Rs 2.75 was the accepted rate, this price has been shared with RWAs. A few RWAs have already agreed and are coming on board. Those who are willing and able will be given first priority. For the rest, the work will either be allotted to agencies or handled under CSR." But RWAs say the rate cut ignores rising costs of horticultural maintenance and burdens residents financially. Royal Green Owners Condominium Association (RWA) in Sector 92, for instance, has been maintaining the greenbelt outside its main gate since 2019. In 2023, it signed an MoU with GMDA to officially maintain a 500-metre stretch. Now, it faces the prospect of continuing the work under protest. "We will have no option but to maintain it at Rs 2.75 under protest. Even at Rs 4, we were contributing from our own funds. This rate cut makes it even harder. GMDA has around 500km of greenbelt area, which is still underdeveloped and even a small fragment of green cover is maintained through either CSR or RWAs like us," president of Rising Homes RWA Praveen Malik said.
