Ireda files ₹510 crore insolvency plea against Gensol under IBC
New Delhi: Indian Renewable Energy Development Agency (Ireda) has filed an insolvency application against Gensol Engineering Ltd over a default of ₹510 crore, according to an exchange filing from the power financier on Wednesday.
"In furtherance to our earlier letter dated 25.04.2025 with respect to M/s Gensol Engineering Limited, this is to inform you that the Company has filed an application today i.e. May 14, 2025 under Section 7 of Insolvency and Bankruptcy Code, 2016 against M/s Gensol Engineering Ltd, for an amount of default of ₹510,00,52,672/- (Rupees Five Hundred Ten Crore and Fifty Two Thousand Six Hundred and Seventy Two Only)," the company said in a filing.
Section 7 of the Insolvency and Bankruptcy Code allows
financial creditors
to initiate a
corporate insolvency resolution process
(CIRP) against a corporate debtor in case of default.
The move follows Ireda's complaint to the Economic Offences Wing (EOW) of Delhi Police on April 25, alleging that Gensol submitted falsified documents and diluted promoters' shares without approval from lenders.
At the time, Ireda had said Gensol's account was under stress but not yet classified as a non-performing asset (NPA). It also stated that an internal review had been initiated in line with Reserve Bank of India guidelines and internal due diligence protocols.
The developments also follow a series of regulatory actions against Gensol Engineering and its promoters. On Tuesday, Anmol Jaggi and Puneet Singh Jaggi, co-founders of Gensol, resigned from the company. Their resignation came a month after the Securities and Exchange Board of India (Sebi) barred them from holding any key managerial positions.
Sebi alleged that the Jaggi brothers diverted company funds for personal luxury purchases and were involved in debt defaults. The market regulator also claimed that Gensol defaulted on loans, including those taken to finance electric vehicles for BluSmart Mobility.
In April, the Enforcement Directorate conducted raids at Gensol's premises and seized documents and electronic records. Sebi has also ordered a forensic audit of the company.
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