NCLT Admits Insolvency Plea Against Gensol Engineering

The Ahmedabad bench of the National Company Law Tribunal on Friday admitted a petition by Indian Renewable Energy Development Agency Ltd. to initiate insolvency proceedings against Gensol Engineering Ltd. The tribunal appointed an interim resolution professional to take charge of the company under the Insolvency and Bankruptcy Code, 2016.

The financial creditor alleged a default of ₹5.10 billion and had sought urgent intervention, citing that Gensol's directors had exited, leaving the company headless.

The tribunal also heard IREDA's insolvency petition against Gensol Engineering’s arm, Gensol EV Lease Ltd., and reserved its verdict, to be announced at 16:30 IST.

Separate petitions are pending against Gensol Electric Vehicles Pvt. Ltd. and BluSmart Mobility Pvt. Ltd. before bankruptcy tribunals in Mumbai and Ahmedabad.

In April, SEBI began investigating Gensol and its promoters for alleged diversion of loans from Power Finance Corp. and IREDA. The regulator imposed interim restrictions on the promoters and barred them from participating in the securities market or holding key roles in the company.

Last month, the NCLT ordered a freeze on bank accounts of Gensol Engineering, its 10 subsidiaries, and individuals, based on a plea by the central government alleging misconduct prejudicial to the company’s interests.