Gensol controversy: IREDA files complaint with EoW

IREDA clarified it did not issue letters cited in falsified documents reported by rating agencies and noted that Gensol’s promoters diluted shareholding without lender approval—constituting a contract breach.
| Photo Credit:
Kesavan A N 1612@Chennai

State-run Indian Renewable Energy Development Agency (IREDA) said on Friday that it initiated an internal review per RBI guidelines and Gensol Engineering’s due diligence protocols over allegations of fund mismanagement.

However, the power sector lender clarified that Gensol’s account is currently under stress but is not classified as an NPA.

Last week, another state-run power sector lender, PFC, filed a complaint with the EoW regarding Gensol Engineering promoters submitting fake documents to rating agencies.

Following recent developments concerning Gensol Engineering and its promoters and associate companies, IREDA’s Investigation and Risk Committees are closely examining the matter. 

“Appropriate actions regarding collaterals and recoveries will be taken based on the outcome of the review,” it added.

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

“The promoters have diluted their shareholdings without lenders approval, constituting breach of contract. In light of this, IREDA has filed a complaint on above matters with the Economic Offences Wing (EoW) against Gensol on April 24, 2025,” IREDA said in a statement.

IREDA is committed to acting responsibly and will update all stakeholders once the company’s assessment concludes. It added that IREDA requests all concerned parties refrain from speculation while the investigation is ongoing.

Gensol was given ₹977.75 crore from IREDA and PFC as term loans, of which ₹663.89 crore was for purchasing 6,400 EVs. However, it procured only 4,704 EVs.

Published on April 25, 2025