NBCC bags order worth ₹161.55 crore from Power Finance Corp

The Indian Renewable Energy Development Agency (IREDA) has approached the Debt Recovery Tribunal (DRT) in Delhi to recover dues totalling ₹729 crore from Gensol Engineering Ltd and its subsidiary Gensol EV Lease Pvt Ltd. The application was filed on May 20, 2025, under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993.

As of 10:24 AM on May 22, 2025,  IREDA share price was trading at ₹171.12, a 0.63% decline, with a 7.90% decline over the past 6 months and a 9.54% drop over the past year.

Two Separate Defaults

IREDA is seeking ₹510 crore from Gensol Engineering and ₹218.95 crore from Gensol EV Lease. Both companies are part of the Gensol Group. Between FY2022 and FY2024, Gensol secured a cumulative loan amount of ₹977.75 crore from IREDA and PFC. These defaults relate to earlier loans sanctioned by IREDA and Power Finance Corporation, with a large portion of the funds – ₹663.89 crore, allocated for the purchase of 6,400 electric vehicles.

The vehicles were leased to BluSmart, a ride-hailing service promoted by one of Gensol’s co-founders. As per the SEBI order, only 4,704 vehicles were acquired, resulting in ₹262.13 Crore remaining unaccounted for.

Insolvency Proceedings Already Initiated

Before approaching the DRT, IREDA had already initiated insolvency proceedings. On May 14 and 15, 2025, applications under Section 7 of the Insolvency and Bankruptcy Code were filed against Gensol Engineering and Gensol EV Lease, respectively.

Read more: IREDA Share Price in Focus as Board Reviews Borrowing Plan

Gensol and Its Promoters

In April, SEBI issued an interim order against Gensol Engineering, barring the company and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in the securities market. The order followed findings related to alleged fund diversion, document falsification, and governance failures. Both directors resigned from their posts on May 12.

SEBI’s order noted that funds meant for business purposes were used for personal expenses, including luxury purchases and transactions with close relatives. It also pointed to forged documents submitted to lenders and credit rating agencies.

Ongoing Investigation

A forensic audit of Gensol and related parties has been mandated. The Ministry of Corporate Affairs is also conducting a wider investigation into Gensol and associated firms. The probe is expected to conclude within the next few months.

Conclusion

IREDA’s filing with the DRT adds to the ongoing regulatory and legal proceedings involving the Gensol Group over outstanding debt and financial irregularities.

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