**Title:** IREDA Seeks ₹729 Crore from Gensol Engineering Amid Bankruptcy Proceedings
**Meta Description:** IREDA has approached the Debt Recovery Tribunal to recover ₹729 crore from Gensol Engineering and its subsidiary, Gensol EV Lease, amid ongoing bankruptcy issues.
**URL Slug:** ireda-recovery-gensol-engineering
**Headline:** IREDA Takes Legal Action to Recover ₹729 Crore from Gensol Engineering and Gensol EV Lease
The Indian Renewable Energy Development Agency (IREDA) has initiated legal proceedings against Gensol Engineering and its subsidiary, Gensol EV Lease Pvt Ltd, to recover approximately ₹729 crore. This action comes after IREDA filed a bankruptcy application against both companies, which are currently facing financial difficulties.
On May 20, 2025, IREDA submitted an original application under Section 19 of The Recovery of Debts and Bankruptcy Act, 1993, to the Debt Recovery Tribunal in Delhi. The agency is seeking to recover a default amount of ₹510 crore from Gensol Engineering Ltd and ₹218.95 crore from Gensol EV Lease Pvt Ltd. This follows an earlier application filed on May 14 under Section 7 of the Insolvency and Bankruptcy Code, 2016, specifically targeting Gensol Engineering for the same default amount.
In addition, IREDA filed a bankruptcy application on May 15 against Gensol EV Lease Ltd, citing a default of ₹218.95 crore. The situation escalated last month when the Securities and Exchange Board of India (Sebi) issued an interim order barring Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in the securities markets due to allegations of fund diversion and governance lapses.
Following Sebi’s order, the Jaggi brothers resigned from their positions within the company. Anmol Singh Jaggi served as Managing Director, while Puneet Singh Jaggi held the role of Whole-time Director. Sebi’s order, issued on April 15, 2025, prohibits the brothers from holding any director or key managerial positions in Gensol until further notice.
The regulatory body began its investigation after receiving a complaint in June 2024 regarding potential share price manipulation and fund misappropriation. In its findings, Sebi indicated that the promoters had misused corporate funds for personal expenses, including purchasing luxury items and transferring money to relatives. The agency also accused Gensol Engineering of attempting to mislead regulators and investors by submitting forged documents.
In summary, IREDA’s legal actions against Gensol Engineering and Gensol EV Lease highlight the ongoing financial turmoil within the companies and the regulatory scrutiny they are under. The outcome of these proceedings could have significant implications for the future of both entities.
**FAQ:**
**What actions has IREDA taken against Gensol Engineering?**
IREDA has filed a bankruptcy application and approached the Debt Recovery Tribunal to recover ₹729 crore from Gensol Engineering and its subsidiary, Gensol EV Lease, due to defaults in payments.
