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The Hindu
8 hours ago
- Business
- The Hindu
NCLT directs insolvency resolution proceedings against Gensol Engineering and arm Gensol EV Lease
The National Company Law Tribunal (NCLT) admitted Gensol Engineering Ltd. and its arm Gensol EV Lease Ltd for insolvency resolution following separate petitions filed by Indian Renewable Energy Development Agency Ltd. (IREDA). However, NCLT appointed an alternative interim resolution professional (IRP) for both the companies, while rejecting the name proposed by IREDA. On May 14, State-run IREDA had filed an application under Section 7 of Insolvency and Bankruptcy Code, 2016 against Gensol Engineering claiming a default of over ₹510 crore. IREDA had filed a separate plea against Gensol EV Lease claiming a default of ₹218.95 crore. IREDA had also initiated proceedings before the Debt Recovery Tribunal against both the firms. The IREDA petition against Gensol Engineering satisfies Section 7's substantive requirements, NCLT Judicial Member Shammi Khan and Technical Member Sanjeev Kumar Sharma, said in their order on June 13. Gensol Engineering parallel Debt Recovery Tribunal (DRT) proceedings do not bar Corporate Insolvency Resolution Process (CIRP), as no moratorium exists pre-admission. Upon admission, the moratorium under Section 14 (1) of IBC will override such proceedings, they noted. DRT May 28 order and the Securities and Exchange Board of India's (SEBI) April 15 order reinforce the need for a corporate insolvency resolution process against Gensol Engineering, to protect the creditors and address governance issues, NCLT said. IREDA proposed the name of Pulkit Gupta, EY Restructuring LLP for interim resolution professional (IRP) for Gensol Engineering and Gensol EV Lease However, Gensol Engineering objected to Gupta's appointment citing prior relationships. The Tribunal finds that the undisclosed relationships raised concerns about Gupta's eligibility, necessitating the appointment of an alternative IRP, NCLT said. NCLT appointed Keshav Khaneja as IRP for Gensol Engineering. Making similar observations, NCLT also appointed Khaneja as IRP for Gensol EV Lease. Gensol has been in the spotlight after SEBI via an interim order in April barred the company's promoters from the securities market for alleged fund diversions and corporate governance lapses.
Time of India
20 hours ago
- Business
- Time of India
NCLT directs insolvency against Gensol, Gensol EV Lease; appoints IRP
The National Company Law Tribunal has initiated insolvency proceedings against Gensol Engineering and Gensol EV Lease following petitions from the Indian Renewable Energy Development Agency due to defaults of ₹510 crore and ₹218.95 crore, respectively. An interim resolution professional has been appointed to manage the affairs of both companies, whose boards have been suspended. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Ind'l Goods/Svs 1. SEPC bags Rs 650 cr solar EPC project in Maharashtra Tired of too many ads? Remove Ads The National Company Law Tribunal on Friday directed to initiate insolvency proceedings against Gensol Engineering and Gensol EV Lease after admitting the petitions filed by the Indian Renewable Energy Development Agency The Ahmedabad bench of the insolvency tribunal appointed interim resolution professionals for both debt-ridden companies after suspending their respective the matter of Gensol Engineering, a two-member NCLT bench said Indian Renewable Energy Development Agency ( IREDA ) has established a financial debt of Rs 510 crore by the company through ledger extracts, TRA statements, demand notices, and NeSL records."The Respondent/Corporate Debtor Gensol Engineering Ltd is admitted in the Corporate Insolvency Resolution Process (CIRP) under section 7 of the IBС, 2016," the National Company Law Tribunal (NCLT) said in a 29-page is engaged in the business of developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/ another petition filed against Gensol EV Lease by IREDA, the NCLT said a default of Rs 218.95 crore is tribunal has placed Gensol Engineering and Gensol EV Lease under the protection of moratorium as per the provisions of the Insolvency & Bankruptcy Code and appointed Keshav Khaneja as the interim resolution professional (IRP) to run the affairs of the company."The IRP is expected to take full charge of the corporate debtor's assets and documents without any delay whatsoever. He is also free to take police assistance in this regard, and this Court, hereby, directs the police authorities to render all assistance as may be required by the IRP in this regard," said the NCLT also directed all personnel connected with Gensol Engineering, its promoters, or any other person associated with its management to extend every assistance and cooperation to the NCLT bench, comprising Judicial Member Shammi Khan and Technical Member Sanjeev Kumar Sharma, has also directed the IRP to submit a "periodical report" on the progress of the CIRP (Corporate Insolvency Resolution Process) in respect of the Corporate Debtor (Gensol).Similarly, for Gensol EV Lease, in the business of leasing electric vehicles and related infrastructure, the NCLT said it had also repayment obligations for the loan taken by Gensol against it were triggered by cross-default clauses linked to payment failures by Gensol Engineering on its May 28, the NCLT ordered to freeze bank and other accounts, restrained the trading of securities and directed asset disclosures of Gensol Engineering and 16 other companies and their was challenged by two Gensol Group entities -- BluSmart Premium Feet and Matrix Gas and Renewable -- before the appellate tribunal NCLAT, which on June 4 directed them to approach the troubles started after an interim order on April 15 by the Securities and Exchange Board of India (SEBI) barred Gensol Engineering and promoters -- Anmol Singh Jaggi and Puneet Singh Jaggi -- from the securities markets till further orders in a fund diversion and governance lapses May 12, the Jaggi brothers resigned from the company following market regulator Sebi's interim order. Anmol Singh Jaggi held the post of Managing Director while Puneet Singh Jaggi was a Whole-time its order on April 15, 2025, the Sebi also barred the Jaggi brothers from holding the position of a director or key managerial personnel in Gensol until further order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.
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Business Standard
a day ago
- Business
- Business Standard
Gensol insolvency: NCLT admits Ireda's plea on ₹510 crore default
Gensol Engineering, which managed electric-car ride-hailing platform BluSmart, was admitted to the insolvency process on Friday following a plea by the Indian Renewable Development Agency (Ireda). Ireda had moved the National Company Law Tribunal's Ahmedabad Bench, citing a default of Rs 510 crore. The matter was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), which outlines the initiation of the Corporate Insolvency Resolution Process (CIRP) on a plea moved by a financial creditor or lender. A coram ('in the presence of') of Judicial Member Shammi Khan and Technical Member Sanjeev Kumar, however, said they were not appointing the resolution professional suggested by Ireda. Ireda's lawyer had urged the tribunal to make an appointment to look after the company, saying Gensol was 'headless' after its promoters allegedly were missing amid regulatory scrutiny. 'By virtue of Sebi's (Securities and Exchange Board of India) order, the company is now headless. Directors have walked out and the company has projects worth crores of rupees. Somebody needs to manage the show,' the lawyer told the Bench. The financial creditor also alleged a breakdown of internal controls and corporate governance norms at Gensol, accusing the promoters of running the listed firm as if it were their proprietary firm. BluSmart on April 16 had paused cab bookings in certain parts of Delhi-National Capital Region, Bengaluru, and Mumbai, the three cities where it operates. The rides were halted a day after Sebi debarred the promoters and directors of Gensol Engineering — Anmol Singh Jaggi and Puneet Singh Jaggi — from accessing the securities markets allegedly for fraudulent practices and funds.
Mint
a day ago
- Business
- Mint
Gensol Engineering insolvency: NCLT admits Ireda's plea on ₹510 crore default
New Delhi: The National Company Law Tribunal's Ahmedabad bench has admitted Gensol Engineering Ltd into corporate insolvency proceedings on a plea filed by state-run Indian Renewable Energy Development Agency Ltd (Ireda), which cited loan defaults amounting to ₹ 510 crore. The bench of Shammi Khan (judicial member) and Sanjeev Kumar Sharma (technical member) passed the order under Section 7 of the Insolvency and Bankruptcy Code (IBC), appointing an interim resolution professional (IRP) to take charge of the company's affairs. Ireda, in its plea, pressed for urgent oversight, arguing that Gensol had effectively become "headless" after its top leadership exited amid ongoing regulatory scrutiny. 'Sir, by virtue of Sebi's order, the company is now headless. Directors have walked out and the company has projects worth crores of rupees. Somebody needs to manage the show,' Ireda's counsel told the tribunal during earlier proceedings. The application also alleged a 'complete breakdown of internal controls and corporate governance norms' at the publicly listed renewable energy firm, accusing its promoters of treating the company 'as if it were their proprietary firm.' Ireda flagged Gensol's sizable order book involving capital-intensive renewable EPC (engineering, procurement, and construction) contracts awarded by government and public sector entities. The interim resolution professional (IRP), who will replace Gensol's management, will form a committee of creditors (CoC) to assess resolution proposals. If no plan is approved within 180–330 days, the company may face liquidation. Ireda first had issued a notice to Gensol on 25 April and disclosed on 14 May that it had filed for insolvency. Since then, several other financial creditors have also initiated insolvency proceedings against the company. On 28 May, the NCLT had also allowed the central government to freeze the bank accounts and lockers of Gensol Engineering, its 10 subsidiaries, and several individuals linked to the matter. Gensol and its entities — including BluSmart Premium Fleet and Matrix Gas & Renewables — subsequently approached the National Company Law Appellate Tribunal (NCLAT) against the asset freeze, but were directed to approach the NCLT for relief. Simultaneously, state-run lenders Ireda and Power Finance Corporation (PFC) also filed separate petitions before the tribunal to recover combined dues of approximately ₹ 992 crore. Gensol's troubles mounted following a 15 April interim order by the Securities and Exchange Board of India (Sebi), which accused promoters Anmol Singh Jaggi and Puneet Singh Jaggi of misappropriating company funds for luxury personal expenses and defaulting on loans — particularly those linked to electric vehicles procured for BluSmart, an EV ride-hailing venture founded by Anmol. Sebi further charged the company with misleading investors by overstating its EV procurement capabilities, despite minimal activity at its manufacturing units. Under mounting regulatory pressure, both Anmol and Puneet resigned from the board on 6 May — nearly a month after Sebi barred them from holding any key managerial positions. On 7 May, the Securities Appellate Tribunal (SAT) refused to stay Sebi's interim order, directing Gensol to file a formal response, and asked Sebi to pass a final order within four weeks of receiving it. Gensol had borrowed a total of ₹ 977.75 crore from Ireda and PFC, including ₹ 663.89 crore specifically earmarked for EV procurement for BluSmart. In April, both lenders lodged complaints with the Economic Offences Wing, alleging that loan-related documents had been falsified.
Mint
a day ago
- Business
- Mint
Gensol Engineering insolvency: NCLT admits Ireda's plea on ₹510 crore default
New Delhi: The National Company Law Tribunal's Ahmedabad bench has admitted Gensol Engineering Ltd into corporate insolvency proceedings on a plea filed by state-run Indian Renewable Energy Development Agency Ltd (Ireda), which cited loan defaults amounting to ₹ 510 crore. The bench of Shammi Khan (judicial member) and Sanjeev Kumar Sharma (technical member) passed the order under Section 7 of the Insolvency and Bankruptcy Code (IBC), appointing an interim resolution professional (IRP) to take charge of the company's affairs. Ireda, in its plea, pressed for urgent oversight, arguing that Gensol had effectively become "headless" after its top leadership exited amid ongoing regulatory scrutiny. 'Sir, by virtue of Sebi's order, the company is now headless. Directors have walked out and the company has projects worth crores of rupees. Somebody needs to manage the show,' Ireda's counsel told the tribunal during earlier proceedings. The application also alleged a 'complete breakdown of internal controls and corporate governance norms' at the publicly listed renewable energy firm, accusing its promoters of treating the company 'as if it were their proprietary firm.' Ireda flagged Gensol's sizable order book involving capital-intensive renewable EPC (engineering, procurement, and construction) contracts awarded by government and public sector entities. The interim resolution professional (IRP), who will replace Gensol's management, will form a committee of creditors (CoC) to assess resolution proposals. If no plan is approved within 180–330 days, the company may face liquidation. Ireda first had issued a notice to Gensol on 25 April and disclosed on 14 May that it had filed for insolvency. Since then, several other financial creditors have also initiated insolvency proceedings against the company. On 28 May, the NCLT had also allowed the central government to freeze the bank accounts and lockers of Gensol Engineering, its 10 subsidiaries, and several individuals linked to the matter. Gensol and its entities — including BluSmart Premium Fleet and Matrix Gas & Renewables — subsequently approached the National Company Law Appellate Tribunal (NCLAT) against the asset freeze, but were directed to approach the NCLT for relief. Simultaneously, state-run lenders Ireda and Power Finance Corporation (PFC) also filed separate petitions before the tribunal to recover combined dues of approximately ₹ 992 crore. Gensol's troubles mounted following a 15 April interim order by the Securities and Exchange Board of India (Sebi), which accused promoters Anmol Singh Jaggi and Puneet Singh Jaggi of misappropriating company funds for luxury personal expenses and defaulting on loans — particularly those linked to electric vehicles procured for BluSmart, an EV ride-hailing venture founded by Anmol. Sebi further charged the company with misleading investors by overstating its EV procurement capabilities, despite minimal activity at its manufacturing units. Under mounting regulatory pressure, both Anmol and Puneet resigned from the board on 6 May — nearly a month after Sebi barred them from holding any key managerial positions. On 7 May, the Securities Appellate Tribunal (SAT) refused to stay Sebi's interim order, directing Gensol to file a formal response, and asked Sebi to pass a final order within four weeks of receiving it. Gensol had borrowed a total of ₹ 977.75 crore from Ireda and PFC, including ₹ 663.89 crore specifically earmarked for EV procurement for BluSmart. In April, both lenders lodged complaints with the Economic Offences Wing, alleging that loan-related documents had been falsified. The Enforcement Directorate (ED) raided Gensol's offices in late April, seizing documents and electronic records as part of a broader financial probe. Sebi has since ordered a forensic audit of the company's accounts and practices.
