NCLAT Remands Gensol’s Asset Freeze Back to NCLT After Denying Relief
NCLAT’s decision retains the freeze on Gensol’s accounts, setting a June 12 deadline for affiliates to challenge the order at the NCLT.
Overview
- The Delhi bench of the NCLAT refused to stay the NCLT’s May 28 order freezing Gensol Engineering’s bank accounts and lockers and sent the case back to the Ahmedabad tribunal.
- The freeze was granted as interim relief to the Ministry of Corporate Affairs over allegations of fund diversion, financial misconduct and governance lapses by promoters Anmol Singh Jaggi and Puneet Singh Jaggi.
- SEBI’s April investigation revealed Gensol raised ₹975 crore in loans to procure 6,400 electric vehicles but bought only 4,704 units, leaving more than ₹200 crore unaccounted for.
- Credit rating agencies ICRA and Care Ratings downgraded ₹2,050 crore of Gensol’s debt to default after uncovering falsified debt‐servicing conduct letters from IREDA and Power Finance Corp.
- Affiliates BluSmart Premium Feet and Matrix Gas and Renewable have been instructed to file fresh applications with the Ahmedabad bench of the NCLT ahead of the June 12 hearing to seek vacation of the freeze.