IREDA files insolvency petition against Gensol Engineering over Rs 510 crore default
The Indian Renewable Energy Development Agency (IREDA) has initiated insolvency proceedings against Gensol Engineering Limited, filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, on May 14, 2025. The application, submitted to the National Company Law Tribunal (NCLT), cites a loan default of ₹510.05 crore by the listed company. The proceedings mark a significant escalation in the financial and regulatory troubles faced by Gensol.
According to IREDA's stock exchange filing, the default relates to financial facilities availed by Gensol Engineering from the agency, with repeated failures to adhere to repayment obligations. IREDA, a government-owned Navratna PSU under the Ministry of New and Renewable Energy, stated that it had initially alerted the exchanges of the potential default on April 25, 2025.
This legal move follows mounting pressure on the company after market regulator SEBI accused its promoters of misusing funds. The Securities and Exchange Board of India (SEBI) issued an interim order alleging that Gensol promoters Anmol and Puneet Jaggi had diverted loans meant for financing electric vehicles under the BluSmart brand—co-founded by the Jaggi brothers in 2019—for personal luxuries.
Among the misused funds, SEBI highlighted the purchase of a luxury apartment in DLF's The Camellias in Gurugram and high-end golf equipment valued at ₹26 lakh. The scandal sent Gensol's stock into a free fall, eroding investor confidence and raising red flags within the corporate governance ecosystem.
In a further blow to the company, Gensol announced in a post-market exchange filing on May 12 that both Anmol and Puneet Jaggi had resigned from their respective executive roles. The brothers cited SEBI's interim order as the driving reason behind their exits.
As the insolvency petition proceeds and SEBI's probe continues, Gensol Engineering finds itself battling both legal and reputational headwinds. The company's future now hinges on resolution efforts under the insolvency process and potential regulatory penalties stemming from the ongoing investigations.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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