Tribunal Admits Insolvency Plea Against Gensol EV Lease After Parent Firm

After admitting Gensol Engineering Ltd. for insolvency proceedings early Friday, the Ahmedabad bench of the National Company Law Tribunal later admitted another petition by Indian Renewable Energy Development Agency Ltd. against the company’s arm, Gensol EV Lease Ltd., for defaulting on dues worth ₹2.19 billion.

IREDA is the petitioner in both insolvency cases. The tribunal appointed interim resolution professionals for Gensol Engineering and Gensol EV Lease to oversee the proceedings under the Insolvency and Bankruptcy Code, 2016. The names of the professionals will be known once the tribunal uploads its orders.

Insolvency petitions are also pending against Gensol Engineering’s other arm, Gensol Electric Vehicles Pvt. Ltd., and related company BluSmart Mobility Pvt. Ltd. in the Mumbai and Ahmedabad benches, respectively. These cases are yet to be admitted.

In April, the Securities and Exchange Board of India had launched an investigation into Gensol Engineering and its promoters for alleged diversion of loans sanctioned by Power Finance Corp. Ltd. and IREDA.

The regulator had passed an interim order banning the company and promoter-directors Anmol Singh Jaggi and Puneet Singh Jaggi from participating in securities market activity or holding any directorial or key managerial roles until further notice.

Last month, the tribunal froze the bank accounts of Gensol Engineering, its 10 subsidiaries, and several individuals, following a plea by the central government. The Centre alleged that the affairs of the company and its affiliates were being conducted in a manner prejudicial to stakeholders’ interests.