IREDA Initiates Insolvency Proceedings Against Gensol Engineering Over ₹510 Crore Default

IREDA, a government-backed financial institution, has taken a decisive legal step under the Insolvency and Bankruptcy Code, 2016. On 14 May 2025, IREDA formally filed an application against Gensol Engineering Limited, citing a substantial financial default. This development marks a significant moment for both companies and reflects the regulatory framework in action for resolving corporate insolvency in India.

Legal Proceedings Initiated by IREDA

In continuation of a prior notice dated 25 April 2025, IREDA has now moved forward with formal insolvency action against Gensol Engineering Limited. The application, filed under Section 7 of the Insolvency and Bankruptcy Code, addresses a default amount of ₹510,00,52,672 (Rupees Five Hundred Ten Crore Fifty-Two Thousand Six Hundred and Seventy-Two only). Gensol, a publicly listed company, is now subject to further legal proceedings before the National Company Law Tribunal (NCLT). The action signifies the creditor’s assertion of rights under the existing legal mechanisms for recovery.

Compliance with SEBI Listing Obligations

In accordance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, IREDA has formally notified the National Stock Exchange (NSE) and BSE Limited regarding the development. The letter, issued by Ms Ekta Madan, Company Secretary and Compliance Officer at IREDA, serves as a regulatory disclosure required of all listed entities. The communication reiterates the agency’s adherence to corporate governance norms, ensuring stakeholders are duly informed of material events impacting financial and operational matters.

Read More: Gensol Share Price Hit 5% Upper Circuit for 2nd Straight Day After Exit of Jaggi Brothers

IREDA Share Performance 

As of May 15, 2025, at 12:05 PM, IREDA share price is trading at ₹165.80 per share, a decline of 1.19% from the previous closing price. Over the past month, the stock has declined by 0.79%.

Conclusion

The filing of insolvency proceedings by IREDA against Gensol Engineering Limited not only highlights the enforcement of financial accountability but also reflects the robustness of India's corporate regulatory environment. As the case progresses, it is expected to undergo detailed scrutiny under the IBC framework, reinforcing the legal rights of financial creditors.
 

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