PFC moves EoW over fake documents submitted by Gensol promoters

PFC is actively pursuing further actions in the instant case and exploring all possible options

State-run Power Finance Corporation Ltd (PFC) on Tuesday said that the power sector lender has filed a complaint with the Economic Offences Wing (EOW) on the issue of Gensol Engineering promoters submitting fake documents with rating agencies.

Regarding communications from credit rating agencies CARE and ICRA on the falsified documents, PFC clarified that it did not issue the letters they referred to.

“Further, considering these red flags, the matter is under investigation internally in PFC under PFC’s anti-fraud policy. Furthermore, PFC has filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents,” the company added.

SEBI in its interim report said, “However, upon seeking confirmation from IREDA and PFC regarding the issuance of the Conduct Letters and NOCs, both the lenders categorically denied having issued such letters.”

“PFC is actively pursuing further actions in the instant case and exploring all possible options. PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations,” the funding agency emphasised.

Gensol Funding

PFC has sanctioned ₹633 crore to Gensol Engineering in January 2023. This funding was earmarked for the procurement of 6,000 EVs (₹587 crore for procurement of 5,000 electric four wheelers for lease to BluSmart Mobility’s ride-hailing service and ₹46 crore for procurement of 1,000 electric three wheelers for cargo operations.)

However, three-wheeler loan was not availed, it added.

Out of the ₹587 crore loan sanctioned towards electric four-wheeler vehicles, PFC had only disbursed ₹352 crore to Gensol for the leasing of 3,000 EVs to BluSmart Mobility.

“Till date, 2,741 vehicles have been delivered and hypothecated to PFC as confirmed by third party agencies appointed by PFC. Additionally, PFC also has pledge of Gensol’s equity shares and Non-Convertible Debentures (NCDs), a Corporate Guarantee from Gensol Ventures, and Personal Guarantees from promoters,” it added.

Liquid assets in the form of TRA balances, DSRA balances, and fixed deposit by BluSmart with a lien marked to PFC are also in place, the Maharatna company said.

Repayments on the disbursed amount had commenced with ₹45 crore repaid, leaving a principal outstanding of ₹307 crore as on April 18, 2025. Until January 31, 2025, Gensol was servicing its dues regularly.

In Q4 FY25, PFC invoked the Debt Service Reserve Account (DSRA) to clear February and March 2025 dues.

Published on April 22, 2025