The Indian Renewable Energy Development Agency Limited (IREDA) has filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against publicly listed Gensol Engineering Limited for a loan default exceeding ₹510 crore.
In a filing with the exchanges, IREDA stated: “This is to inform you that the Company (IREDA) has filed an application today, i.e. 14 May 2025, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Gensol Engineering Limited… for an amount of default of INR 510,00,52,672/-,” the filing read.
Gensol Engineering Limited borrowed ₹977.75 crore from IREDA and Power Finance Corporation (PFC), of which ₹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 ₹262.13 crore unaccounted for, according to an interim decision issued by the Securities and Exchange Board of India (SEBI) last month.
In April, both lenders filed complaints with the Economic Offences Wing against Gensol, alleging manipulation of debt-servicing documents.
Jaggi Brothers Resign
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.
“I hereby resign from the post of managing director of Gensol Engineering with effect from the close of business hours on 12 May 2025. I am resigning due to the direction given under SEBI interim order dated 15 April 2025,” Anmol Singh Jaggi stated in a letter to the company’s board, as reported by the Economic Times.
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 ₹978 crore in term loans jointly sanctioned by IREDA and PFC.
