New Delhi: After Power Finance Corporation (PFC), Indian Renewable Energy Development Agency (IREDA) has announced that it has initiated an internal review against Gensol Engineering and has also filed a complaint with the Economic Offences Wing (EoW) on April 24. In a regulatory filing to the stock exchanges on Friday, IREDA said, “Following recent developments concerning Gensol Engineering Ltd and its promoters and associate companies, Indian Renewable Energy Development Agency Limited (IREDA) has initiated an internal review in accordance with RBI guidelines and the company’s due diligence protocols.” IREDA also clarified that Gensol’s account is currently under stress but is not classified as a Non-Performing Asset (NPA).
IREDA is one of the two state-run non-banking financial companies, apart from PFC, that sanctioned loans to scam-hit Gensol Engineering. PFC and IREDA had a combined loan exposure of Rs 977 crore. While PFC sanctioned Rs 633-crore loan to Gensol, IREDA loaned Rs 344 crore. “The Investigation and Risk Committees of IREDA are closely examining the matter. Appropriate actions regarding collaterals and recoveries will be taken based on the outcome of the review,” said IREDA.
Regarding communications from credit rating agencies on the falsified documents, IREDA clarified that it did not issue the letters they referred to. “The promoters have diluted their shareholdings without lenders approval, constituting breach of contract. In light of this, IREDA has filed a complaint on above matters with the Economic Offences Wing (EoW) against Gensol on 24th April 2025,” the company told the bourses.
“IREDA is committed to acting responsibly and will update all stakeholders once the company’s assessment concludes. IREDA requests all concerned parties to refrain from speculation while the investigation is ongoing,” it said.
The statement comes three days after PFC said that it has also initiated an internal probe under its Anti-Fraud Policy and has filed a complaint with EoW for the issuance of falsified documents.
Gensol was to purchase electric vehicles (EVs) from the loans secured from IREDA and 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 (NPA). As per the latest stock exchange filings, the Jaggi brothers hold 62.65 per cent in Gensol, of which 81.6 percent shares are pledged.
