IREDA says Gensol promoters diluted fairness with out lender approval, information EoW grievance, ETCFO
Indian Renewable Vitality Improvement Company (IREDA), one in every of two public sector lenders who had loaned cash to scam-hit Gensol Engineering for getting electrical automobiles, on Friday mentioned the promoters of the agency breached the contract by diluting shareholding with out lenders’ approval.
IREDA mentioned it has filed a grievance with the Financial Offences Wing (EoW) for the contract breach on April 24.
“Following latest developments regarding Gensol Engineering Ltd and its promoters and affiliate firms, IREDA has initiated an inside evaluate in accordance with RBI tips and the corporate’s due diligence protocols,” IREDA mentioned in a inventory trade submitting.
Gensol’s account is at present beneath stress however not categorised as an NPA.
The Investigation and Threat Committees of IREDA are intently analyzing the matter, it mentioned, including acceptable actions concerning collaterals and recoveries will probably be taken primarily based on the end result of the evaluate.
Relating to communications from credit standing companies on the falsified paperwork, IREDA mentioned it didn’t situation the letters they referred to.
“The promoters have diluted their shareholdings with out lenders approval, constituting breach of contract. In gentle of this, IREDA has filed a grievance on above issues with the Financial Offences Wing (EoW) in opposition to Gensol on April 24, 2025,” the submitting mentioned.
IREDA mentioned it’s dedicated to performing responsibly and can replace all stakeholders as soon as the corporate’s evaluation concludes.
“IREDA requests all involved events to chorus from hypothesis whereas the investigation is ongoing,” it added.
Gensol was to buy EVs from cash borrowed by IREDA and Energy Finance Company (PFC), earlier than leasing them to to ride-hailing platform BluSmart.
Brothers Anmol Singh Jaggi and Puneet Singh Jaggi, promoters of Gensol and BluSmart, are dealing with regulatory motion by the Securities and Trade Board of India (SEBI) over allegations of diversion of the mortgage cash meant for EV buy. SEBI has imposed a capital market ban on the duo, barring them from holding positions in listed firms.
BluSmart suspended operations on April 17, resulting in ceasing of lease funds and elevating considerations amongst lenders that the Gensol mortgage account might quickly flip right into a non-performing asset (NPA).
As per the most recent inventory trade filings, the Jaggi brothers maintain 62.65 per cent in Gensol, of which 81.6 per cent shares are pledged.
