New Delhi, May 9 -- The fate of thousands of BluSmart electric cars remains in limbo as state-run lenders who financed their purchase dither over next steps.

Gensol Engineering Ltd had borrowed from Power Finance Corp. Ltd (PFC) and Indian Renewable Energy Development Agency (Ireda) to buy 4,700 electric cars, which were then leased to BluSmart. These cars have been idling since the regulatory strictures on Anmol Singh Jaggi, who led both companies. Cars lose value, electric cars more so, and idling ones may see batteries degrade even faster.

"Many big banks, asset financing firms and family offices of high net worth individuals are in the market to sell or lease the BluSmart vehicles they financed," a person aware of the matter said. "...