The National Company Law Tribunal has issued a notice to Gensol Engineering after IREDA filed an insolvency petition over a loan default of more than Rs 510 crore
The National Company Law Tribunal (NCLT) on Friday issued a notice to Gensol Engineering after the Indian Renewable Energy Development Agency (IREDA) filed an insolvency plea against the crisis-hit company, according to a report published by Bar and Bench. A bench comprising judicial member Shammi Khan and technical member Sanjeev Kumar Sharma said, “Issue notice. Serve Gensol by all modes.”
During the hearing, advocate Swati Soparkar urged the NCLT to appoint an interim resolution professional (IRP) considering Sebi’s order and the exit of top directors. “Gensol is now headless and the NCLT needs to appoint an IRP to take charge,” she told the NCLT. However, the tribunal refused to do so without hearing Gensol. The case will now be heard on June 3.
IREDA has filed an application under Section 7 of the insolvency and Bankruptcy Code, 2016, against publicly listed Gensol Engineering for a loan default exceeding Rs 510 crore.
Gensol Engineering Limited borrowed Rs 977.75 crore from IREDA and Power Finance Corporation (PFC), of which Rs 663.89 crore was allocated for purchasing electric vehicles for BluSmart. However, the company acquired only 4,704 vehicles against the sanctioned commitment of 6,400 EVs when accepting the loan, leaving up to Rs 262.13 crore unaccounted for, according to an interim decision issued by Sebi last month.
Jaggi Brothers' Resignation
Gensol Engineering’s managing director Anmol Singh Jaggi and whole-time director Puneet Singh Jaggi resigned from their positions on Monday in compliance with SEBI’s interim order. Their resignations, effective from 12 May 2025, follow increased regulatory scrutiny of the company and its leadership for allegations of corporate misgovernance and financial misconduct.
Their resignations came after the Securities Appellate Tribunal (SAT) rejected a request to stay SEBI’s interim order last week.
This development follows a ban imposed by SEBI last month, prohibiting the Jaggi brothers from accessing the securities markets amid accusations of siphoning off loan funds from their listed company for personal use. The primary allegation involves misuse of Rs 978 crore in term loans jointly sanctioned by IREDA and PFC.