New Delhi: The Debts Recovery Tribunal (DRT)–III, Delhi, has ordered Gensol Engineering Limited and Gensol EV Lease Pvt Ltd on Friday to maintain status quo on secured assets and vehicles in response to the recovery proceedings initiated by state-run Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). The two state-owned non-banking financial companies have moved the DRT to recover Rs 992 crore from Gensol.
The DRT orders were issued by Presiding Officer Shiv Kumar during virtual hearings held on May 22, for three Original Applications (OAs) filed under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993. While two applications have been filed by IREDA in which it has sought Rs 510 crore from Gensol Engineering and Rs 218 crore from Gensol EV Lease Pvt Ltd, one application has been filed by PFC to recover an amount of Rs 264 crore from Gensol Engineering.
In all matters, the DRT directed the defendants to maintain status quo with respect to secured assets and vehicles, asked the applicant institutions to provide complete copies of the OA documents to defendants' counsel within two days and file proof of service, directed the defendants’ counsel to file vakalatnama within three days, ordered the Tribunal registry to issue notices on interim reliefs to remaining defendants, and scheduled all matters for hearing on the issue of interim relief on May 28, 2025, stating that no further adjournments will be granted.
IREDA moved the DRT against Gensol Engineering and its EV leasing subsidiary on May 20. In addition, it has also initiated insolvency proceedings against Gensol in the National Company Law Tribunal (NCLT), which has admitted the plea. PFC, on the other hand, has only moved the DRT for the recovery of its loan and is invoking guarantees and securities to recover as much of the default amount as it can.
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.
