Refex Green Mobility Pulls Out of Deal to Take Over BluSmart EV Fleet from Gensol

Refex Green Mobility Pulls Out of Deal to Take Over BluSmart EV Fleet from Gensol

In yet another setback for Gensol Engineering, Refex Green Mobility—a subsidiary of Chennai-based Refex Industries—has announced that it is abandoning plans to acquire nearly 3,000 electric vehicles from Gensol. This development adds to the growing list of financial and operational challenges Gensol is currently facing, as the company grapples with a severe liquidity crunch and regulatory scrutiny.

Refex Calls Off EV Acquisition

In a filing with the National Stock Exchange (NSE) on April 12, 2025, Refex Green Mobility stated that it had dropped the planned transaction due to “evolving commitments at both ends,” which made it difficult to conclude the deal within the agreed timeline.

Back in January 2025, Refex Industries had informed public markets about its intention to take over 2,997 electric four-wheelers from Gensol. As per the agreement, Refex was also expected to lease these EVs to BluSmart—an electric ride-hailing platform—and assume Gensol’s associated debt amounting to ₹315 crore.

Now, with the deal scrapped, Gensol is left in a more vulnerable position than before.

Gensol’s Mounting Debt and Fundraising Efforts

Gensol Engineering, which was once hailed as a rising star in solar EPC and electric mobility, is now burdened with a total debt of ₹1,146 crore. This stands against a reserve of just ₹589 crore, resulting in a deficit of over ₹550 crore.

In an effort to address this shortfall, Gensol’s board had approved a ₹600 crore fundraising initiative on March 13, 2025. The company was banking on this capital infusion—alongside asset sales, including its EV fleet and a planned subsidiary divestment—to shore up liquidity.

However, with Refex now withdrawing from the vehicle acquisition deal, a major piece of that recovery strategy has fallen apart.

Leadership Cross-Links: Gensol and BluSmart

The leadership of Gensol and BluSmart remains intertwined. Anmol Singh Jaggi, who serves as the Chairman and Managing Director of Gensol, and Puneet Singh Jaggi, a Director, are also co-founders of BluSmart along with Punit Goyal.

The failure of this asset sale has ripple effects on BluSmart as well, which has been facing its own set of challenges, including funding delays and operational downsizing.

BluSmart’s Struggles Continue

As part of a strategic pivot, BluSmart is redeploying 300 of its electric cabs to Uber’s platform, a move being described as a pilot project. Sources familiar with the matter say this step is aimed at helping BluSmart transition into a fleet operator model, leveraging Uber’s platform rather than running a consumer-facing ride-hailing app.

Earlier reports had hinted at a possible acquisition of BluSmart by Uber, but Anmol Singh Jaggi has denied any ongoing acquisition talks, maintaining that BluSmart continues to operate independently.

A Deal Gone Sour: Implications

Refex’s decision to back out not only affects Gensol’s balance sheet but also signals a lack of investor and partner confidence in the firm’s governance and financial stability—especially after recent SEBI findings alleged fund diversion, fake lender letters, and fraudulent no-default claims by Gensol.

With this cancellation:

• Gensol is unlikely to recover ₹315 crore in debt via vehicle sales.

• The proposed financial turnaround plan has been seriously undermined.

• BluSmart’s dependency on Gensol’s vehicles makes its own future uncertain unless alternative fleet arrangements are secured.

The Bigger Picture

Gensol’s current woes are emblematic of a broader challenge in India’s rapidly growing EV and clean energy ecosystem: rapid scale without robust compliance. The episode reinforces the need for stronger corporate governance, transparent financial practices, and more thorough due diligence by stakeholders across the renewable energy value chain.

Refex’s exit from the deal was positioned as a mutual understanding based on shifting priorities. However, industry insiders believe the decision is closely tied to the deepening crisis at Gensol, especially after recent regulatory findings.

Conclusion

What was once seen as a synergistic tie-up between a mobility player (Refex), a renewable energy engineering firm (Gensol), and an EV ride-hailing platform (BluSmart) has now unraveled. As Gensol scrambles for liquidity and BluSmart shifts gears to survive, one thing is clear—the future of clean mobility in India will demand more than vision and ambition; it will require integrity, prudence, and trust.