**Gensol’s Loan Discrepancy Raises Questions Among Lenders**
In a troubling development for Gensol Engineering Pvt. Ltd., the company has come under scrutiny for a significant discrepancy in its electric vehicle (EV) financing. Despite securing substantial loans for the purchase of electric cars, Gensol reportedly acquired far fewer vehicles than it had pledged, leading to concerns among its lenders.
Gensol’s lenders, including Power Finance Corp. Ltd (PFC), failed to identify the mismatch between the number of cars financed and those actually acquired. This oversight persisted even after the last loan installment was disbursed, raising questions about the diligence of the lending institutions. PFC is now considering legal action, including approaching the National Company Law Tribunal, to recover the funds lent to Gensol. Additionally, they may involve the Serious Fraud Investigation Office and the Economic Offences Wing of the Delhi Police to investigate the matter further.
The financial irregularities came to light following an interim order from the Securities and Exchange Board of India (Sebi), which revealed that Gensol had purchased only 4,704 electric cars for ₹567.7 crore, despite having received ₹829.9 crore in total funding for the acquisition of 6,400 vehicles. This left a staggering ₹262.1 crore unaccounted for, prompting calls for accountability from the lenders.
Former directors of Gensol expressed their concerns, noting that while they relied on audited financial statements, the lenders should have been aware of the hypothecation status of the vehicles. The recent resignations of four out of five independent directors further highlight the internal turmoil within the company.
Industry experts, such as Shriram Subramanian from InGovern, have criticized the lenders for their lack of oversight, suggesting that the failure to detect the discrepancies raises questions about the processes in place. The situation calls for a thorough investigation into whether there was any collusion among employees at Ireda and PFC.
As Gensol navigates this challenging period, the implications for its future and the broader EV financing landscape remain to be seen.
**FAQ**
*What actions are being taken against Gensol for the loan discrepancies?*
Power Finance Corp. is exploring legal options, including filing a case with the National Company Law Tribunal, and may involve other investigative agencies to recover the funds.
