New Delhi: The Ahmedabad bench of the National Company Law Tribunal (NCLT) on Friday issued a notice to Gensol Engineering Ltd on a ₹510 crore insolvency plea filed by the Indian Renewable Energy Development Agency Ltd (Ireda).
The bench, comprising judicial member Shammi Khan and technical member Sanjeev Kumar Sharma, declined Ireda’s request to appoint an interim resolution professional (IRP) during today’s initial hearing, stating that Gensol Enegineering must be heard first.
Ireda’s counsel argued for immediate oversight, claiming the company was “headless” after its directors allegedly fled amid regulatory scrutiny. “Sir, by virtue of Sebi’s (Securities and Exchange Board of India) order, the company is now headless. Directors have walked out and the company has projects worth crores of rupees. Somebody needs to manage the show,” the counsel argued.
In its plea, Ireda alleged a “complete breakdown of internal controls and corporate governance norms” at Gensol, accusing the promoters of running the listed firm “as if it were their proprietary firm.”
The plea also highlighted Gensol’s “substantial order book” comprising strategically significant renewable EPC contracts awarded by government and public sector entities, which it described as “capital-intensive” projects.
The next hearing is scheduled for 3 June.
On 14 May, Ireda disclosed that it had filed an application under Section 7 of the Insolvency and Bankruptcy Code, citing a loan default of ₹510 crore by Gensol. This followed a notice dated 25 April, in which Ireda had warned of legal action over the alleged default.
This is the latest blow to hit the company already reeling from a regulatory probe and the alleged exit of its top leadership.
Gensol’s troubles began with a 15 April interim order from Sebi, which accused promoters Anmol Singh Jaggi and Puneet Singh Jaggi of misappropriating funds for luxury purchases and defaulting on loans, including those tied to electric vehicles (EVs) acquired for BluSmart, a ride-hailing venture founded by Anmol.
Sebi also alleged that Gensol misled investors with inflated claims about its EV procurement, despite minimal activity at its plants.
Amid mounting pressure, Anmol and Puneet Singh Jaggi, resigned from the company on 6 May. Their exit came nearly a month after Sebi barred them from holding any leadership roles.
A day later, the Securities Appellate Tribunal (SAT) refused to stay Sebi’s interim order, directing Gensol to respond and Sebi to issue a final order within four weeks of receiving the reply.
Gensol had borrowed ₹977.75 crore from Ireda and Power Finance Corp. (PFC), including ₹663.89 crore designated for EV procurement for BluSmart. In April, both lenders filed complaints with the Economic Offences Wing, alleging document falsification related to loan servicing.
The Enforcement Directorate raided Gensol’s offices in late April, seizing documents and electronic records. Sebi has since ordered a forensic audit.
Meanwhile, the Delhi High Court has ordered the seizure of 698 EVs operated by Gensol and BluSmart in response to petitions filed by lenders and lessors over the past three weeks. Gensol, which claims to operate a fleet of 8,000 EVs, is facing multiple loan and lease default claims.