IREDA initiates insolvency proceedings against Gensol

State-run Indian Renewable Energy Development Agency (IREDA) said on Wednesday that it has initiated insolvency proceedings against controversy-hit Gensol Engineering.

“This is to inform you that the company has filed an application today (May 14, 2025) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Gensol Engineering, listed company bearing CIN L74210GJ2012PLC129176 for an amount of default of ₹510,00,52,672,” the power sector lender said in an update on the BSE.

The development comes close on the heels of another State-controlled power sector lender Power Finance Corporation (PFC) saying that it has filed a complaint with the Economic Offences Wing (EOW) on the issue of Gensol Engineering promoters submitting fake documents with rating agencies. PFC moved EoW on April 22.

Term loans for EV-buys

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.

The insolvency proceedings come after Gensol Engineering promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, resigned from the company following market regulator SEBI’s interim order earlier this month.

Anmol Singh Jaggi held the post of Managing Director, while Puneet Singh Jaggi was a Whole-time Director.

Last month, SEBI barred Gensol and its promoters from the securities markets.

Published on May 14, 2025