New Delhi: Indian Renewable Energy Development Agency (IREDA) has moved the Debt Recovery Tribunal (DRT), Delhi, to recover a combined loan of Rs 728.95 crore from Gensol Engineering and Gensol EV Lease Pvt Limited. In a regulatory filing to the stock exchanges on Wednesday, IREDA said, “In furtherance to our earlier letter dated 14.05.2025 and 16.05.2025 with respect to M/s Gensol Engineering Limited and M/s Gensol EV Lease Pvt Limited respectively, this is to inform you that the Company has filed an Original Application under Section 19 of The Recovery of Debts and Bankruptcy Act, 1993 before Hon’ble Debt Recovery Tribunal Delhi on 20.05.2025 for a default amount of Rs. 510,00,52,672/- (Rupees Five Hundred Ten Crore and Fifty Two Thousand Six Hundred and Seventy Two Only) and Rs. 218.95 Crore (Rupees Two Hundred and Eighteen Crore Ninety Five Lakh Only) against M/s Gensol Engineering Limited and M/s Gensol EV Lease Pvt Limited respectiveling and Gensol EV Lease Pvt Ltd. On May 16, the Ahmedabad bench of National Company Law Tribunal (NCLT) admitted IREDA’s insolvency plea against Gensol Engineering.
The total loan default amount that IREDA is looking to recover from Gensol now stands at Rs 728.95 crore, which is 0.95 percent of IREDA’s total gross loan portfolio of Rs 76,282 crore, as per FY2024-25 data. IREDA’s shares opened at Rs 169.85 on Wednesday and closed at Rs 172.30 apiece, reflecting resilience and investor confidence in the company’s ability to manage the crisis.
Gensol was to purchase electric vehicles (EVs) from the loans secured from IREDA and Power Finance Corporation (PFC), before leasing them to ride-hailing platform BluSmart. Brothers Anmol Singh Jaggi and Puneet Singh Jaggi, promoters of Gensol and BluSmart, are facing regulatory action by the Securities and Exchange Board of India (SEBI) over allegations of diversion of the loan money meant for EV purchase. SEBI has imposed a capital market ban on the duo, barring them from holding positions in listed companies.
BluSmart suspended operations on April 17, leading to ceasing of lease payments and raising concerns among lenders that the Gensol loan account could soon turn into a non-performing asset.
In a regulatory filing to the stock exchanges on May 12, Gensol Engineering had announced that its promoters, Anmol Singh Jaggi Managing Director, and Puneet Singh Jaggi, whole-time Director, have tendered their resignation.