The Indian Renewable Energy Development Agency Limited (IREDA) has filed an application against publicly listed Gensol Engineering for a loan default exceeding Rs5.1bn ($59.73m).
The legal action comes in the middle of an ongoing probe by the Securities and Exchange Board of India (SEBI) over alleged fund diversion and governance failures.
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SEBI earlier barred Gensol and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities market.
IREDA and the Power Finance Corporation (PFC) provided a loan worth Rs9.7bn to Gensol Engineering. Of the total loan amount, Gensol allocated Rs6.6bn to purchase EVsnfor BluSmart.
According to an interim decision issued by the SEBI in April 2025, Gensol then purchased 4,704 vehicles against the sanctioned commitment of 6,400 EVs, leaving up to Rs2.62bn unaccounted for.
In a filing with the exchanges, IREDA stated: “In furtherance to our earlier letter dated April 25, 2025, with respect to M/s Gensol Engineering Limited, 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, 2016, against M/s Gensol Engineering Ltd., for an amount of default of ₹510,00,52,672.”
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By GlobalDataIREDA, a “navratna” (literally meaning “nine gems” – a designation given to top-performing public sector enterprises) Government of India enterprise under the administrative control of the Ministry of New and Renewable Energy, is a public limited government company established in 1987 as a non-banking financial Institution.
The company is engaged in promoting, developing and extending financial assistance for establishing projects associated with new and renewable sources of energy and energy efficiency/conservation.
Gensol supports the commissioning of solar advisory, execution and operation services for solar projects in India and abroad. It has a portfolio of more than 33,693MW.
