**Gensol Engineering Faces ₹510 Crore Insolvency Plea from Ireda**
**Meta Description:** Gensol Engineering Ltd is under scrutiny as Ireda files a ₹510 crore insolvency plea, citing governance issues and loan defaults.
**URL Slug:** gensol-engineering-insolvency-plea-ireda
**Gensol Engineering Faces Insolvency Plea Amid Governance Concerns**
In a significant development, the Ahmedabad bench of the National Company Law Tribunal (NCLT) has issued a notice to Gensol Engineering Ltd regarding a ₹510 crore insolvency petition filed by the Indian Renewable Energy Development Agency Ltd (Ireda). The tribunal, led by judicial member Shammi Khan and technical member Sanjeev Kumar Sharma, opted not to appoint an interim resolution professional (IRP) during the initial hearing, emphasizing the need to first hear Gensol’s side.
Ireda’s legal counsel argued for immediate intervention, claiming that Gensol was operating without leadership after its directors allegedly fled due to regulatory scrutiny. The counsel stated, “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.”
In its plea, Ireda highlighted a “complete breakdown of internal controls and corporate governance norms” at Gensol, accusing the promoters of managing the publicly listed firm as if it were their personal entity. The plea also pointed out Gensol’s substantial order book, which includes significant renewable EPC contracts awarded by government and public sector entities, describing these as capital-intensive projects.
The next hearing is set for June 3. On May 14, Ireda revealed it had filed an application under Section 7 of the Insolvency and Bankruptcy Code, citing a loan default of ₹510 crore by Gensol. This action followed a notice issued on April 25, warning of potential legal action over the alleged default. This situation adds to the challenges faced by Gensol, which is already under regulatory investigation and dealing with the departure of its top leadership.
Gensol’s troubles escalated following a Sebi interim order on April 15, which accused promoters Anmol Singh Jaggi and Puneet Singh Jaggi of misappropriating funds for luxury purchases and defaulting on loans, including those related to electric vehicles (EVs) for BluSmart, a ride-hailing venture founded by Anmol. Sebi also alleged that Gensol misled investors with exaggerated claims about its EV procurement, despite limited activity at its facilities.
Under increasing pressure, Anmol and Puneet Singh Jaggi resigned from their positions on May 6, shortly after Sebi barred them from holding leadership roles. The Securities Appellate Tribunal (SAT) subsequently refused to stay Sebi’s interim order, instructing Gensol to respond and requiring Sebi to issue a final order within four weeks of receiving that response.
Gensol has borrowed a total of ₹977.75 crore from Ireda and Power Finance Corp. (PFC), which includes ₹663.89 crore earmarked for EV procurement.
**FAQ**
**What is the current status of Gensol Engineering’s insolvency case?**
Gensol Engineering is facing a ₹510 crore insolvency plea filed by Ireda, with the next hearing scheduled for June 3. The NCLT has yet to appoint an interim resolution professional, pending Gensol’s response.
