IREDA Files Insolvency Petition Against Gensol EV Lease For ₹2.19 Billion Dues

Indian Renewable Energy Development Agency Ltd. (IREDA) has filed an insolvency petition against Gensol Engineering Ltd.’s subsidiary, Gensol EV Lease Ltd., seeking recovery of outstanding dues amounting to ₹2.19 billion.

The state-owned lender had earlier filed an insolvency petition against Gensol Engineering itself, with the National Company Law Tribunal (NCLT) issuing a notice to the company on Friday. In that case, IREDA claimed dues of ₹5.10 billion.

Last month, the Securities and Exchange Board of India (SEBI) began probing Gensol Engineering and its promoters for alleged diversion of loans obtained 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 any securities market-related activity and holding key management positions until further notice.

SEBI found prima facie evidence that a ₹967 million loan from PFC was diverted to promoter and promoter-linked entities, bypassing its intended use. Additionally, ₹375 million from a ₹1.71 billion loan taken by Gensol EV Lease from IREDA was allegedly transferred to Anmol Jaggi, a matter SEBI said requires further examination.

Meanwhile, the Enforcement Directorate conducted raids at Gensol Engineering's offices in Delhi, Gurugram, and Ahmedabad, detaining Puneet Jaggi from a Delhi hotel. These actions were carried out under the Foreign Exchange Management Act (FEMA) provisions.