IREDA Moves DRT And NCLT Against Gensol Group Firms For ₹7 Billion Dues

Indian Renewable Energy Development Agency Ltd. (IREDA) has initiated legal proceedings to recover dues of ₹7.29 billion from Gensol Engineering Ltd. and its subsidiary Gensol EV Lease Pvt. Ltd., the state-owned lender said in an exchange filing. It has filed cases in the Debt Recovery Tribunal to recover ₹5.10 billion from Gensol Engineering and ₹2.19 billion from Gensol EV Lease.

In parallel, IREDA has also moved insolvency petitions against both companies with the Ahmedabad bench of the National Company Law Tribunal.

The legal action follows regulatory scrutiny. In April, the Securities and Exchange Board of India (SEBI) revealed it was investigating Gensol Engineering and its promoters for alleged loan diversion from Power Finance Corp. Ltd. and IREDA. In its interim order, SEBI barred the company and its promoter-directors, Anmol Jaggi and Puneet Singh Jaggi, from accessing the securities market or holding key managerial roles until further notice.

SEBI found that ₹967 million of a PFC loan taken by Gensol Engineering was diverted to entities linked to the promoters, and ₹375 million out of a ₹1.71-billion IREDA loan to Gensol EV Lease was transferred to Anmol Jaggi. The regulator said this required further scrutiny.

The Enforcement Directorate has also raided multiple Gensol offices in Delhi, Gurugram, and Ahmedabad under the Foreign Exchange Management Act. Puneet Singh Jaggi was detained from a hotel in Delhi during the crackdown.