NCLT directs insolvency towards Gensol, Gensol EV Lease; appoints IRP, ETCFO
New Delhi, The Nationwide Firm Regulation Tribunal on Friday directed to provoke insolvency proceedings towards Gensol Engineering and Gensol EV Lease after admitting the petitions filed by the Indian Renewable Power Improvement Company.
The Ahmedabad bench of the insolvency tribunal appointed interim decision professionals for each debt-ridden firms after suspending their respective boards.
Within the matter of Gensol Engineering, a two-member NCLT bench mentioned Indian Renewable Power Improvement Company (IREDA) has established a monetary debt of Rs 510 crore by the corporate via ledger extracts, TRA statements, demand notices, and NeSL information.
“The Respondent/Company Debtor Gensol Engineering Ltd is admitted within the Company Insolvency Decision Course of (CIRP) beneath part 7 of the IBС, 2016,” the Nationwide Firm Regulation Tribunal (NCLT) mentioned in a 29-page order.
Gensol is engaged within the enterprise of growing and lengthening monetary help for organising initiatives referring to new and renewable sources of vitality and vitality effectivity/conservation.
In one other petition filed towards Gensol EV Lease by IREDA, the NCLT mentioned a default of Rs 218.95 crore is established.
The tribunal has positioned Gensol Engineering and Gensol EV Lease beneath the safety of moratorium as per the provisions of the Insolvency & Chapter Code and appointed Keshav Khaneja because the interim decision skilled (IRP) to run the affairs of the corporate.
“The IRP is anticipated to take full cost of the company debtor’s property and paperwork with none delay in any respect. He’s additionally free to take police help on this regard, and this Courtroom, hereby, directs the police authorities to render all help as could also be required by the IRP on this regard,” mentioned the NCLT bench.
It additionally directed all personnel related with Gensol Engineering, its promoters, or another particular person related to its administration to increase each help and cooperation to the IRP.
The NCLT bench, comprising Judicial Member Shammi Khan and Technical Member Sanjeev Kumar Sharma, has additionally directed the IRP to submit a “periodical report” on the progress of the CIRP (Company Insolvency Decision Course of) in respect of the Company Debtor (Gensol).
Equally, for Gensol EV Lease, within the enterprise of leasing electrical autos and associated infrastructure, the NCLT mentioned it had additionally compensation obligations for the mortgage taken by Gensol Engineering.
Defaults towards it had been triggered by cross-default clauses linked to cost failures by Gensol Engineering on its amenities.
On Could 28, the NCLT ordered to freeze financial institution and different accounts, restrained the buying and selling of securities and directed asset disclosures of Gensol Engineering and 16 different firms and their promoters.
This was challenged by two Gensol Group entities — BluSmart Premium Ft and Matrix Fuel and Renewable — earlier than the appellate tribunal NCLAT, which on June 4 directed them to method the NCLT.
Gensol’s troubles began after an interim order on April 15 by the Securities and Alternate Board of India (SEBI) barred Gensol Engineering and promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities markets until additional orders in a fund diversion and governance lapses case.
On Could 12, the Jaggi brothers resigned from the corporate following market regulator Sebi’s interim order. Anmol Singh Jaggi held the put up of Managing Director whereas Puneet Singh Jaggi was a Entire-time Director.
In its order on April 15, 2025, the Sebi additionally barred the Jaggi brothers from holding the place of a director or key managerial personnel in Gensol till additional orders.
The order got here after the Securities and Alternate Board of India (Sebi) acquired a criticism in June 2024 referring to the manipulation of share value and diversion of funds from GEL and thereafter began inspecting the matter. PTI
