Gensol Engineering Under EoW Scanner After PFC Flags Loan Irregularities
PFC has lodged a formal complaint with the Economic Offences Wing (EoW) of the Delhi Police against Gensol Engineering Ltd
Power Finance Corporation Ltd (PFC), a government-owned Non-Banking Financial Company (NBFC), has lodged a formal complaint with the Economic Offences Wing (EoW) of the Delhi Police against Gensol Engineering Ltd, alleging submission of falsified documents.
In a statement issued on April 22, PFC said, 'A complaint has been filed with the Economic Offences Wing concerning the issuance of falsified documents. PFC remains committed to protecting its interests and ensuring full loan recovery, while maintaining transparency in all its operations." The company added that an internal investigation is also underway under its anti-fraud policy.
PFC clarified that it did not issue any letters to credit rating agencies CARE Ratings and ICRA, refuting claims reportedly made by Gensol. The controversy emerged when the agencies began verifying letters that allegedly originated from PFC and the Indian Renewable Energy Development Agency Ltd (IREDA), which claimed Gensol was regular in its debt servicing. These letters, later found to be forged, were used to misrepresent the company's creditworthiness.
This latest development marks the fourth ongoing investigation into Gensol and its affiliate, BluSmart Mobility. The company is already under scrutiny by the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA), and the Enforcement Directorate (ED) is also expected to initiate a probe into possible money laundering.
According to PFC, it sanctioned a Rs 633 crore loan to Gensol Engineering in January 2023 as part of the government's push for electric vehicle (EV) adoption through schemes like FAME and PM E-bus Sewa. Of this, Rs 587 crore was earmarked for procuring 5,000 electric four-wheelers for lease to BluSmart Mobility, while Rs 46 crore was allocated for acquiring 1,000 electric three-wheelers for cargo operations—a portion of the loan that was never availed.
So far, Rs 352 crore has been disbursed by PFC for the procurement of 3,000 EVs, with 2,741 of those vehicles delivered and hypothecated to PFC, as verified by third-party agencies.
PFC also said it is evaluating all recovery options for the outstanding Rs 307 crore. The company noted that Gensol remained compliant with its repayment obligations until January 31, 2025. However, in the fourth quarter of FY25, PFC was forced to invoke the Debt Service Reserve Account (DSRA) to cover missed payments for February and March.
The lender has further secured its interests through pledged equity shares and non-convertible debentures (NCDs), corporate guarantees from Gensol Ventures Pvt Ltd, personal guarantees from promoters, and liquid assets including TRA and DRA balances, as well as fixed deposits from BluSmart, marked with a lien in PFC's favor.
Earlier this year, SEBI issued an interim order against Gensol Engineering and its promoters Anmol Singh Jaggi and Puneet Singh Jaggi, citing alleged fund diversion.
Shares of Gensol Engineering fell 5% on April 22 and have plunged 86% year-to-date in 2025.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
First Published:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
32 minutes ago
- Time of India
Goats of diverse breeds flood Raja Bazaar market ahead of Bakrid
Patna: With Bakrid just days away, city's Raja Bazaar cattle market witnessed a significant surge in visitors on Thursday as the Muslim faithful purchased goats for qurbani (sacrificial rituals) during the festival on June 7. Tired of too many ads? go ad free now Sellers, who have come not only from various parts of Bihar but also from other states such as Uttar Pradesh, Rajasthan and Madhya Pradesh with thousands of goats of diverse breeds, were hopeful of selling all the cattle by Friday. "I sold 136 indigenous goats weighing 12-18kg each, priced between Rs 11,000 and Rs 20,000. Only four goats are left. We are sure that we will sell the remaining by Friday. The market was good this year, and we witnessed a huge rush," said Moh Aslam from Begusarai. While on an average the goats are priced between Rs 10,000-12,000, premium specimens fetched Rs 80,000-1.5 lakh, based on their size and breed like Barbari from Etawah, UP, and Totapari from Jaipur, Rajasthan, — highly sought after for their distinctive appearance. Additionally, the market features Jamnapari from UP, Ajmeri from Ajmer, Rajasthan, and various local breeds from several Bihar districts, including Buxar, Begusarai, Bhojpur, Purnia, Kishanganj, Saharsa, Arwal, Jehanabad and Siwan. Nazre Alam, a vendor from Azamgarh's Mubarakpur in UP, said he bought 45 goats, mainly Totapari and Ajmeri breeds. "I sold 43 cattle heads within a week, each in the range of Rs 35,000 to Rs 80,000, weighing 30kg to 45kg. Of the three left, one costs Rs 1.5 lakh, weighing 140kg, while the other two are priced at Rs 95,000 (weighing 80-90 kg)," he said. Mohd Ziaullah Khan, coordinator of the cattle market, said over 200 traders brought around 10,000 sacrificial animals for sale. Tired of too many ads? go ad free now Another vendor, Anisur Haque, a resident of Azimabad, who brought two species of goat — Sirohi from Rajasthan and Gujri of northern India — said they cost Rs 80,000 a pair. "They look more appealing predominantly because of their brown coat with dark patches and sturdy build. They weigh 40-45kg," he said.
Time of India
36 minutes ago
- Time of India
Three thefts in two weeks on metro rail network
Ahmedabad: Infocity police in Gandhinagar registered a theft case on Wednesday after materials worth Rs 3.81 lakh were stolen from the GNLU metro station at Koba village. This was the third theft reported on the Ahmedabad-Gandhinagar metro rail network in the past two weeks. Ravindrasinh Bihola, a 27-year-old security guard, filed the FIR with Infocity police. He stated that he was posted at the GNLU metro station for the past three months. He was on night duty from 8 pm to 8 am. According to his complaint, the theft occurred during the intervening night of May 30 and May 31. Bihola said that the stolen items were stored by the Omega Lift Company in large and medium wooden boxes under the elevated track at three locations near the station. At about 6.30 am on May 31, he noticed that the wooden panels of the boxes were broken, and the materials inside were missing. He informed the incoming guard and his supervisor, Kailash, who then contacted the lift company officials. The stolen items include 480 non-standard base gaskets, 456 anchor bolts, 912 spring washers, and various trimming gaskets. Omega Company representatives inspected the location and confirmed the theft. Earlier, on May 22, around 500 metres of copper cables worth Rs 9 lakh were stolen from near Shahpur metro station, which caused a disruption in service for nearly 7 hours. Another case of service disruption was reported on June 2, when 700 metres of copper cable worth Rs 17.85 lakh was stolen between Koba Circle and Old Koba stations. With regard to the latest case, Infocity police registered a case of theft against unknown persons and began an investigation. Cops are also probing if there is any link between the present case and the two earlier incidents. Metro rail authorities are yet to issue a statement regarding the latest theft reported on Wednesday.
Time of India
36 minutes ago
- Time of India
Tata Power's Anokha Dhaaga smart circularity programme achieves milestone in plastic waste conversion
Tata Power's Anokha Dhaaga smart circularity programme achieves milestone in plastic waste conversion MUMBAI: Tata Power's Anokha Dhaaga Smart Circularity programme has successfully converted 5,000 kgs of single-use plastic waste into recycled fabric products. The initiative, operated by women across six centres, has generated over Rs 20 lakh in fair-trade earnings while addressing plastic pollution concerns through community engagement. The initiative supports Tata Power's #SustainableisAttainable vision. Additionally, the programme incorporated denim collection efforts, providing new utility to previously worn clothing items. This programme corresponds with World Environment Day 2025's theme—"End Plastic Pollution." The initiative supports the #BeatPlasticPollution campaign by demonstrating how environmental innovation and community participation can effectively address plastic waste issues while creating positive social and environmental outcomes, an official said on Wednesday. World Environment Day 2025 advocates for reconsidering plastic usage, based on scientific research regarding its environmental impact, promoting the principles of refusing, reducing, reusing, recycling, and rethinking plastic consumption. 'The initiative commenced with plastic collection activities across Tata Power's Trombay facility, residential areas, and various Tata Group and Tata Power offices in Mumbai. Through active participation from employees and their families, substantial plastic waste was prevented from reaching landfills,' the official said. Working alongside ReCircle, a waste management social enterprise, and their Safai Saathis, the collected plastic was processed into RPET fabric. The women of Anokha Dhaaga received training to create sustainable products from this recycled material, resulting in numerous finished items, including clothing and bags, the official added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
