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Mint
05-08-2025
- Automotive
- Mint
NCLAT stops Gensol IRP from leasing out 152 EVs on lessor objection
New Delhi: Auto leasing firm SMAS Auto Leasing India Pvt. Ltd approached the National Company Law Appellate Tribunal (NCLAT) on Tuesday, against Gensol Engineering Ltd's interim resolution professional (IRP) for attempting to lease out its 164 electric vehicles (EVs) through public advertisement. SMAS had leased all 164 EVs to Gensol before it entered insolvency. Of these, 152 are currently with court-appointed receivers, while 12 remain with the IRP. A bench led by chairperson Justice Ashok Bhushan took up the matter and directed both the IRP and the committee of creditors (CoC) to file their responses. The tribunal will decide on 28 August whether the IRP can proceed with leasing these EVs. 'The appeal may be disposed of on the next date with regard to the vehicles that were in possession of the appellant prior to the initiation of CIRP, as well as those with the IRP,' the tribunal said in its order. SMAS, in its petition, argued that the leases had lapsed in April, well before Gensol's insolvency proceedings were admitted in June. Therefore, the IRP had no legal authority to re-lease the fleet. The company also alleged that the IRP attempted to take possession of the vehicles via court-appointed receivers, originally named in an earlier Delhi high court case. 'Ownership of these vehicles rests with us. The lease was terminated well before insolvency. Now, by misusing part of a prior order, they are trying to lease them again. That is completely illegal,' said SMAS's senior counsel Arun Kathpalia during the hearing. In May, SMAS had moved the Delhi high court, which restrained Gensol and its affiliated entity, BluSmart Mobility, from creating any third-party rights over the leased vehicles. The court also appointed receivers to take custody of the fleet. Gensol's insolvency was admitted on 13 June by the National Company Law Tribunal (NCLT) in Ahmedabad, following a petition by the Indian Renewable Energy Development Agency (Ireda), which alleged loan defaults of ₹ 510 crore. Its EV leasing subsidiary, Gensol EV Leasing Pvt. Ltd, was also brought under CIRP. Subsequently, the IRP issued a public advertisement claiming that around 4,000 pre-owned EVs were available for lease in Delhi-NCR and Bengaluru. 'The cars are available at a fixed monthly lease rental and a nominal down payment,' the notice stated. These vehicles had originally been leased by Gensol to its group company BluSmart Mobility, an EV-based ride-hailing firm founded in 2019. However, BluSmart was also admitted into insolvency on 28 July by the NCLT, after defaulting on dues of over ₹ 1.28 crore. It now joins a growing list of Gensol-linked entities undergoing CIRP. Gensol and BluSmart's troubles intensified earlier this year after the Securities and Exchange Board of India (Sebi) issued an interim order on 15 April against Gensol promoters Anmol and Puneet Jaggi. Sebi accused them of diverting investor funds meant for EV purchases toward personal luxuries, including a $5 million apartment and expensive golf equipment. The regulator also flagged discrepancies in vehicle procurement, while Gensol had raised funds for 6,400 EVs, only 4,704 were actually acquired. Anmol and Puneet Jaggi resigned from Gensol's board on 6 May. The Securities Appellate Tribunal (SAT), in a hearing the next day, refused to stay Sebi's order and directed the company to respond. A final Sebi ruling is pending.
Mint
15-05-2025
- Business
- Mint
Gensol Engineering share price hits 5% upper circuit despite IREDA's insolvency move
Gensol Engineering share price in focus today: Gensol Engineering shares, which have been in a freefall since the end of February amid the ongoing crisis at the firm, managed to reverse some of their losses over the past few trading sessions. The stock hit the 5% upper circuit limit for the third straight session on Thursday, May 15, reaching ₹ 62.44 apiece. Even as the state-run Indian Renewable Energy Development Agency (IREDA) filed an insolvency application against Gensol Engineering, optimism in the stock price followed the company's announcement that the Securities Appellate Tribunal (SAT) had granted it two weeks to respond to SEBI's interim order. On April 15, the market regulator Securities and Exchange Board of India (SEBI), in an interim order, barred Gensol's promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from trading in the securities market and from holding any key managerial position in Gensol or any other listed company. SEBI also ordered a forensic audit. The investigation found that the promoters of the cleantech firm had siphoned off loans from state-run lenders Power Finance Corporation (PFC) and IREDA for unrelated and personal expenses. According to SEBI, between FY22 and FY24, IREDA and PFC lent Gensol ₹ 311.5 crore and ₹ 352.4 crore, respectively, to purchase electric cars for its EV-based ride-hailing business, BluSmart. Gensol added another ₹ 166 crore in equity capital, bringing the total to ₹ 829.9 crore. However, the company reportedly bought only 4,704 cars for ₹ 567.7 crore—leaving ₹ 262.1 crore unaccounted for. The Indian Renewable Energy Development Agency (IREDA) on Wednesday filed an insolvency application against the embattled Gensol Engineering for a default of ₹ 510 crore, according to an exchange filing by the clean energy-focused lender. This development comes nearly three weeks after IREDA filed a complaint with the Economic Offences Wing (EOW) of the Delhi Police against Gensol Engineering for allegedly submitting falsified documents and diluting promoters' shares without the lender's approval. "In furtherance to our earlier letter dated April 25, 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 the 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 Fifty-Two Thousand Six Hundred Seventy-Two Only)," the exchange filing stated. While informing the exchanges of its complaint with the EOW on April 25, IREDA had said that Gensol's account is currently under stress but has not yet been classified as a non-performing asset (NPA). It also mentioned that it has initiated an internal review in line with RBI guidelines and the company's due diligence protocols. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
