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Informist, Friday, May 16, 2025

 

--NCLT issues notice to Gensol Engg on IREDA insolvency plea 

--NCLT bench to hear IREDA plea against Gensol Engg on Jun 3 

 

NEW DELHI - The Ahmedabad bench of the National Company Law Tribunal on Friday issued a notice to Gensol Engineering Ltd. on an insolvency petition filed by Indian Renewable Energy Development Agency Ltd. The tribunal will next hear the case on Jun 3.

 

Indian Renewable Energy Development Agency, the financial creditor, has alleged a default of INR 5.10 billion by Gensol under the Insolvency and Bankruptcy Code. The petitioner even sought appointment of an interim resolution professional on the first date of hearing and asked the tribunal to admit its insolvency petition on Friday itself. Gensol's directors have walked out, the company is now headless, said the petitioner. However, the tribunal said it was not inclined to give this order without hearing Gensol Engineering.

 

Last month, the Securities and Exchange Board of India said it was probing Gensol Engineering and its promoters for diverting loans taken from Power Finance Corp. Ltd. and Indian Renewable Energy Development Agency Ltd. The regulator also issued an interim order against the company and its two promoter-directors, Anmol Jaggi and Puneet Singh Jaggi, barring them from any securities market-related activity and from holding the post of director or any key managerial position in the company till further orders. 

 

SEBI said it had found prima facie that a loan of INR 967 million from PFC taken by Gensol Engineering "was diverted to promoter and promoter-linked entities, bypassing the stated end-use of the PFC loan". The markets regulator also found that INR 375 million out of a total loan of INR 1.71 billion taken by Gensol Engineering's subsidiary, Gensol EV Lease, from IREDA was transferred to Anmol Jaggi. "This aspect needs further examination," it said in the interim order. 

 

The Enforcement Directorate had also conducted searches at Gensol Engineering's premises in Delhi, Gurugram in Haryana, and Ahmedabad in Gujarat and detained Puneet Jaggi from a hotel in Delhi. The raids were conducted under provisions of the Foreign Exchange Management Act. 

 

At 1113 IST, shares of IREDA were up 2.7% at INR 171.28 on the National Stock Exchange, while Gensol's shares traded 5.0% higher at INR 65.56.  End

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

 

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