NCLT Issues Notice To Gensol Engineering On Insolvency Petition Filed By IREDA

The Ahmedabad bench of the National Company Law Tribunal (NCLT) on Friday issued a notice to Gensol Engineering Ltd. regarding an insolvency petition filed by the Indian Renewable Energy Development Agency Ltd. (IREDA). The tribunal is scheduled to hear the case next on June 3.

IREDA, the financial creditor, has alleged a default of ₹5.10 billion by Gensol under the Insolvency and Bankruptcy Code. The petitioner requested the appointment of an interim resolution professional and sought immediate admission of the insolvency petition. IREDA claimed that Gensol’s directors have walked out, leaving the company headless. However, the tribunal declined to grant the interim resolution professional appointment without hearing Gensol.

Last month, the Securities and Exchange Board of India (SEBI) revealed it was probing Gensol Engineering and its promoters for allegedly diverting loans taken from Power Finance Corp. Ltd. (PFC) and IREDA. SEBI issued an interim order barring the company and its promoter-directors, Anmol Jaggi and Puneet Singh Jaggi, from participating in securities market activities or holding key managerial roles until further notice.

SEBI found prima facie that a PFC loan of ₹967 million was diverted to promoters and linked entities, bypassing the loan’s intended use. Additionally, ₹375 million from a total ₹1.71 billion loan taken by Gensol’s subsidiary, Gensol EV Lease, from IREDA was allegedly transferred to Anmol Jaggi, which SEBI said requires further examination.

The Enforcement Directorate also conducted raids at Gensol Engineering’s offices in Delhi, Gurugram, and Ahmedabad, detaining Puneet Jaggi from a Delhi hotel. These actions were taken under the Foreign Exchange Management Act (FEMA).