New Delhi: Public Sector Undertakings (PSUs) exposed to the crises unfolding at Gensol Engineering, a prominent player in India’s Renewable Energy (RE) sector, are considering all possible options to mitigate the impact. A large share of the Rs 7,000-crore order book of Gensol Engineering came from PSUs like NTPC Limited, Damodar Valley Corporation (DVC) and Singareni Collieries Company Ltd (SCCL). According to two sources, the Ministry of New and Renewable Energy (MNRE) is reviewing the Engineering, Procurement and Construction (EPC) contracts awarded to Gensol by PSUs and is considering re-bidding of some of the contracts to make sure they are completed on time.
Non-banking financial institutions, including Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA), are pursuing legal options to safeguard their combined loan exposure of Rs 977 crore to Gensol Engineering. In a statement released on April 22, PFC said that it is pursuing further actions in the instant case and exploring all possible options. It also said that it has filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents. Shares of Gensol Engineering dropped 5 percent to hit fresh lower circuit limit on Wednesday.
Gensol Engineering is under intense scrutiny following allegations of fund diversion and corporate governance failures. The Securities and Exchange Board of India (SEBI) has barred the company’s co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities market and holding key positions within the company. This action stems from accusations that the Jaggi brothers misused company funds, including diverting resources intended for Gensol’s electric vehicle (EV) affiliate to purchase a luxury apartment. SEBI’s investigation revealed forged letters regarding loan repayments, prompting show-cause notices from the lenders.
In response to SEBI’s interim order dated April 15, 2025, the Ministry of Corporate Affairs (MCA) is examining the matter under the provisions of the Companies Act, 2013. The MCA is conducting due diligence through the offices of the Director General and the Registrar of Companies.
The controversy has led to significant leadership changes within Gensol. Three independent directors—Harsh Singh, Kuljit Singh Popli, and Arun Menon—have resigned from the company’s board. In his resignation letter, Popli expressed disappointment, stating, “... the way things have unfolded and come to light, I am not in a position to continue as (an) Independent Director.”
The unfolding events have also impacted BluSmart, the EV ride-hailing service co-founded by Anmol Jaggi. The company has temporarily suspended bookings on its app following the controversy.
