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4w ago

NCLT Admits Gensol Into Insolvency on ₹510 Crore IREDA Default

SEBI’s April interim order found that Gensol fell short of its EV procurement targets, leaving over ₹262 crore unaccounted for; the tribunal then froze the company’s bank accounts.

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Overview

  • The NCLT’s Ahmedabad bench admitted IREDA’s Section 7 petition after Gensol defaulted on a ₹510 crore loan and appointed a resolution professional from the IBBI list.
  • The tribunal ordered the freeze and attachment of all bank accounts and lockers held by Gensol Engineering and its associated entities.
  • SEBI’s interim order revealed that Gensol borrowed ₹977.75 crore to lease 6,400 electric vehicles but acquired only 4,704, resulting in ₹262.13 crore unaccounted and defaults of ₹57.9 crore to IREDA and ₹13.67 crore to PFC.
  • SEBI confirmed that promoters Anmol Singh Jaggi and Puneet Singh Jaggi diverted corporate funds for personal use and manipulated Gensol’s share price.
  • Other creditors have filed fresh insolvency petitions against BluSmart Mobility and Gensol Engineering over unpaid dues, and the NCLAT recently rejected pleas to lift asset freezes.