Indian Renewable Energy Development Agency (IREDA) has initiated legal proceedings against Gensol Engineering Ltd. and its subsidiary Gensol EV Lease Pvt Ltd., seeking to recover ₹729 crore in outstanding dues. The state-run lender has filed an original application with the Debt Recovery Tribunal (DRT) Delhi under the Recovery of Debts and Bankruptcy Act, 1993.
Key Legal Actions & Financial Impact
- IREDA is claiming ₹510 crore from Gensol Engineering and ₹218.95 crore from Gensol EV Lease Pvt Ltd.
- The agency has also filed bankruptcy applications under the Insolvency and Bankruptcy Code, 2016, against both entities.
- The National Company Law Tribunal (NCLT) has scheduled a hearing on June 3, 2025, to address IREDA’s insolvency petition.
SEBI’s Crackdown & Governance Concerns
The legal action follows an interim order by SEBI in April 2025, barring Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market due to fund diversion and governance lapses. SEBI’s investigation revealed that the promoters allegedly misused company funds for luxury purchases, including a high-end apartment, golf equipment, and personal credit card payments.
Market & Industry Impact
Gensol Engineering had secured ₹977.75 crore in loans, including ₹663.89 crore for purchasing 6,400 electric vehicles (EVs), which were leased to BluSmart Mobility, a related entity. SEBI’s findings indicate that funds were diverted, raising concerns over corporate governance and financial transparency.
With legal proceedings intensifying, the case is expected to have far-reaching implications for corporate lending practices and regulatory oversight in India’s renewable energy sector.
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