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Time of India
16-06-2025
- Business
- Time of India
NCLT admits insolvency pleas against Gensol and EV arm over ₹728 cr default
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has admitted two insolvency petitions filed by the Indian Renewable Energy Development Agency (Ireda) against Gensol Engineering Ltd (GEL) and its electric vehicle leasing subsidiary, Gensol EV Lease Pvt Ltd (GEVL), initiating corporate insolvency resolution processes (CIRP) against both entities, reports ToI. In its petition against Gensol Engineering, Ireda cited a default of ₹510 crore related to term loans extended for various renewable energy projects undertaken by the company. The tribunal, while admitting the case under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, noted that Ireda had sufficiently demonstrated the existence of financial debt and a default. Separately, insolvency proceedings were also initiated against GEVL over unpaid dues amounting to ₹218 crore. GEVL had borrowed funds through multiple term loans to support its electric vehicle leasing operations and related infrastructure projects. The defaults, according to Ireda, were triggered under cross-default clauses tied to Gensol Engineering's loan repayments. The borrowings were backed by personal guarantees from promoters Anmol Singh Jaggi and Puneet Singh Jaggi, as well as corporate guarantees from Gensol Engineering. The insolvency admission marks a significant development for the Gensol group, which has been active in the clean energy and EV mobility sectors.
Time of India
13-06-2025
- Business
- Time of India
Gensol group faces insolvency over Ireda dues
BENGALURU: The National Company Law Tribunal (NCLT), Ahmedabad has admitted two separate insolvency petitions filed by Indian Renewable Energy Development Agency (Ireda) against Gensol Engineering (GEL) and its subsidiary Gensol EV Lease (GEVL), initiating corporate insolvency resolution processes (CIRP) against both companies. Tired of too many ads? go ad free now In the case of Gensol Engineering, the tribunal admitted Ireda's petition for defaulted dues amounting to Rs 510.10 crore. The defaults stemmed from term loan facilities extended by Ireda for various projects undertaken by GEL. The tribunal held that Ireda had demonstrated the existence of financial debt and default under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Separately, the tribunal admitted insolvency proceedings against Gensol EV Lease for outstanding dues of Rs 218.95 crore. A ccording to Ireda's petition, GEVL had availed multiple term loans for electric vehicle leasing and related infrastructure. The defaults were triggered through cross-default provisions linked to Gensol Engineering's repayment failures. Personal guarantees by promoters Anmol Singh Jaggi and Puneet Singh Jaggi and corporate guarantees by Gensol Engineering, were also provided to secure the borrowings. Gensol EV Lease contested the maintainability of the petition, arguing that the defaults were premature, primarily arising from GEL's repayment delays, and that the outstanding debt had not crystallised. The tribunal rejected these objections, holding that the cross-default clauses in the loan agreements were valid and contractually enforceable. It also noted that GEVL failed to cure the defaults within the stipulated time frame after being issued notices by Ireda. Tired of too many ads? go ad free now The tribunal, however, accepted GEVL's objection concerning conflict of interest in Ireda's nomination of Pulkit Gupta as interim resolution professional, and appointed Keshav Khaneja as IRP to oversee the CIRP process. With the admission of both matters, moratoriums have come into effect under Section 14 of the IBC, prohibiting legal proceedings, asset transfers and recovery actions against both Gensol Engineering and Gensol EV Lease. Troubles at Gensol unfolded after a Sebi investigations two months ago revealed that the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, systematically used loans from several creditors, taken in the name of Gensol, to buy a luxury flat, inflate Gensol's stock price, for personal use through their private ventures and for purposes other than those for which the loans were taken. They were also found to have forged no-default letters from lenders like Ireda and PFC to falsely project there was no default by the company.
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Business Standard
13-06-2025
- Business
- Business Standard
Gensol insolvency: NCLT admits Ireda's plea on ₹510 crore default
Gensol Engineering, which managed electric-car ride-hailing platform BluSmart, was admitted to the insolvency process on Friday following a plea by the Indian Renewable Development Agency (Ireda). Ireda had moved the National Company Law Tribunal's Ahmedabad Bench, citing a default of Rs 510 crore. The matter was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), which outlines the initiation of the Corporate Insolvency Resolution Process (CIRP) on a plea moved by a financial creditor or lender. A coram ('in the presence of') of Judicial Member Shammi Khan and Technical Member Sanjeev Kumar, however, said they were not appointing the resolution professional suggested by Ireda. Ireda's lawyer had urged the tribunal to make an appointment to look after the company, saying Gensol was 'headless' after its promoters allegedly were missing amid regulatory scrutiny. '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 lawyer told the Bench. The financial creditor also alleged a 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. BluSmart on April 16 had paused cab bookings in certain parts of Delhi-National Capital Region, Bengaluru, and Mumbai, the three cities where it operates. The rides were halted a day after Sebi debarred the promoters and directors of Gensol Engineering — Anmol Singh Jaggi and Puneet Singh Jaggi — from accessing the securities markets allegedly for fraudulent practices and funds.
Mint
13-06-2025
- Business
- Mint
Gensol Engineering insolvency: NCLT admits Ireda's plea on ₹510 crore default
New Delhi: The National Company Law Tribunal's Ahmedabad bench has admitted Gensol Engineering Ltd into corporate insolvency proceedings on a plea filed by state-run Indian Renewable Energy Development Agency Ltd (Ireda), which cited loan defaults amounting to ₹ 510 crore. The bench of Shammi Khan (judicial member) and Sanjeev Kumar Sharma (technical member) passed the order under Section 7 of the Insolvency and Bankruptcy Code (IBC), appointing an interim resolution professional (IRP) to take charge of the company's affairs. Ireda, in its plea, pressed for urgent oversight, arguing that Gensol had effectively become "headless" after its top leadership exited amid ongoing regulatory scrutiny. 'Sir, by virtue of Sebi's 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,' Ireda's counsel told the tribunal during earlier proceedings. The application also alleged a 'complete breakdown of internal controls and corporate governance norms' at the publicly listed renewable energy firm, accusing its promoters of treating the company 'as if it were their proprietary firm.' Ireda flagged Gensol's sizable order book involving capital-intensive renewable EPC (engineering, procurement, and construction) contracts awarded by government and public sector entities. The interim resolution professional (IRP), who will replace Gensol's management, will form a committee of creditors (CoC) to assess resolution proposals. If no plan is approved within 180–330 days, the company may face liquidation. Ireda first had issued a notice to Gensol on 25 April and disclosed on 14 May that it had filed for insolvency. Since then, several other financial creditors have also initiated insolvency proceedings against the company. On 28 May, the NCLT had also allowed the central government to freeze the bank accounts and lockers of Gensol Engineering, its 10 subsidiaries, and several individuals linked to the matter. Gensol and its entities — including BluSmart Premium Fleet and Matrix Gas & Renewables — subsequently approached the National Company Law Appellate Tribunal (NCLAT) against the asset freeze, but were directed to approach the NCLT for relief. Simultaneously, state-run lenders Ireda and Power Finance Corporation (PFC) also filed separate petitions before the tribunal to recover combined dues of approximately ₹ 992 crore. Gensol's troubles mounted following a 15 April interim order by the Securities and Exchange Board of India (Sebi), which accused promoters Anmol Singh Jaggi and Puneet Singh Jaggi of misappropriating company funds for luxury personal expenses and defaulting on loans — particularly those linked to electric vehicles procured for BluSmart, an EV ride-hailing venture founded by Anmol. Sebi further charged the company with misleading investors by overstating its EV procurement capabilities, despite minimal activity at its manufacturing units. Under mounting regulatory pressure, both Anmol and Puneet resigned from the board on 6 May — nearly a month after Sebi barred them from holding any key managerial positions. On 7 May, the Securities Appellate Tribunal (SAT) refused to stay Sebi's interim order, directing Gensol to file a formal response, and asked Sebi to pass a final order within four weeks of receiving it. Gensol had borrowed a total of ₹ 977.75 crore from Ireda and PFC, including ₹ 663.89 crore specifically earmarked for EV procurement for BluSmart. In April, both lenders lodged complaints with the Economic Offences Wing, alleging that loan-related documents had been falsified.
Mint
13-06-2025
- Business
- Mint
Gensol Engineering insolvency: NCLT admits Ireda's plea on ₹510 crore default
New Delhi: The National Company Law Tribunal's Ahmedabad bench has admitted Gensol Engineering Ltd into corporate insolvency proceedings on a plea filed by state-run Indian Renewable Energy Development Agency Ltd (Ireda), which cited loan defaults amounting to ₹ 510 crore. The bench of Shammi Khan (judicial member) and Sanjeev Kumar Sharma (technical member) passed the order under Section 7 of the Insolvency and Bankruptcy Code (IBC), appointing an interim resolution professional (IRP) to take charge of the company's affairs. Ireda, in its plea, pressed for urgent oversight, arguing that Gensol had effectively become "headless" after its top leadership exited amid ongoing regulatory scrutiny. 'Sir, by virtue of Sebi's 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,' Ireda's counsel told the tribunal during earlier proceedings. The application also alleged a 'complete breakdown of internal controls and corporate governance norms' at the publicly listed renewable energy firm, accusing its promoters of treating the company 'as if it were their proprietary firm.' Ireda flagged Gensol's sizable order book involving capital-intensive renewable EPC (engineering, procurement, and construction) contracts awarded by government and public sector entities. The interim resolution professional (IRP), who will replace Gensol's management, will form a committee of creditors (CoC) to assess resolution proposals. If no plan is approved within 180–330 days, the company may face liquidation. Ireda first had issued a notice to Gensol on 25 April and disclosed on 14 May that it had filed for insolvency. Since then, several other financial creditors have also initiated insolvency proceedings against the company. On 28 May, the NCLT had also allowed the central government to freeze the bank accounts and lockers of Gensol Engineering, its 10 subsidiaries, and several individuals linked to the matter. Gensol and its entities — including BluSmart Premium Fleet and Matrix Gas & Renewables — subsequently approached the National Company Law Appellate Tribunal (NCLAT) against the asset freeze, but were directed to approach the NCLT for relief. Simultaneously, state-run lenders Ireda and Power Finance Corporation (PFC) also filed separate petitions before the tribunal to recover combined dues of approximately ₹ 992 crore. Gensol's troubles mounted following a 15 April interim order by the Securities and Exchange Board of India (Sebi), which accused promoters Anmol Singh Jaggi and Puneet Singh Jaggi of misappropriating company funds for luxury personal expenses and defaulting on loans — particularly those linked to electric vehicles procured for BluSmart, an EV ride-hailing venture founded by Anmol. Sebi further charged the company with misleading investors by overstating its EV procurement capabilities, despite minimal activity at its manufacturing units. Under mounting regulatory pressure, both Anmol and Puneet resigned from the board on 6 May — nearly a month after Sebi barred them from holding any key managerial positions. On 7 May, the Securities Appellate Tribunal (SAT) refused to stay Sebi's interim order, directing Gensol to file a formal response, and asked Sebi to pass a final order within four weeks of receiving it. Gensol had borrowed a total of ₹ 977.75 crore from Ireda and PFC, including ₹ 663.89 crore specifically earmarked for EV procurement for BluSmart. In April, both lenders lodged complaints with the Economic Offences Wing, alleging that loan-related documents had been falsified. The Enforcement Directorate (ED) raided Gensol's offices in late April, seizing documents and electronic records as part of a broader financial probe. Sebi has since ordered a forensic audit of the company's accounts and practices.
