Crisis-hit Gensol Engineering has failed to make payment of around Rs 4 crore to pass-through certificates (PTCs) holders for May, according to a report published by The Economic Times. The last successful repayment was made in April.
The solar engineering, procurement and construction (SEPC) company had issued PTCs (loans backed by underlying assets) to raise funds. These PTCs were later distributed to retail investors via the online platform Grip Invest. The company used vehicles operating on the BluSmart platform as collateral for the loan.
The report stated that repayments were done out of cash flow generated from piling vehicles and revenue. But since Blusmart cab service has been stopped due to ongoing financial and legal hurdles, the loan repayment has become uncertain.
Grip Invest founder Nikhil Agarwal confirmed these developments to ET, saying Gensol has repaid nearly 56% of the total issue size of Rs 5.6 crore. The remaining outstanding amount stands at Rs 4.04 crore. The loans were backed by 76 vehicles that had been deployed on BluSmart platform. Currently, all vehicles are in the possession of the lessor, the report added.
Asset Freeze Order for Gensol
On May 28, the Ahmedabad bench of the National Company Law Tribunal (NCLT) has ordered stringent action against Gensol Engineering Ltd, its affiliated firms, and senior executives following serious allegations of financial inconsistencies and corporate governance violations.
The tribunal directed a freeze and attachment of all bank accounts and lockers belonging to Gensol Engineering and its connected entities.
The order was issued after the Ministry of Corporate Affairs (MCA) petitioned for urgent interim relief to enable the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) to take swift action to protect the financial assets of Gensol and 37 associated parties and individuals.
The tribunal cited prima facie evidence indicating that Gensol Engineering engaged in systemic discrepancies. Multiple agencies, including the MCA, SEBI, SFIO, RBI, and the Income Tax Department, are actively participating in the ongoing investigation against Gensol.
