New Delhi: Following Power Finance Corporation (PFC), the Indian Renewable Energy Development Agency (IREDA) has initiated an internal review and filed a complaint with the Economic Offences Wing (EoW) against Gensol Engineering Ltd. In a regulatory filing dated April 25, IREDA stated that the action was taken in light of recent developments involving Gensol, its promoters, and associated companies.
“The Investigation and Risk Committees of IREDA are closely examining the matter. Appropriate actions regarding collaterals and recoveries will be taken based on the outcome of the review,” the agency said. IREDA added that while Gensol’s account is under stress, it has not yet been classified as a Non-Performing Asset (NPA).
IREDA, one of two state-run NBFCs involved, had sanctioned ₹344 crore in loans to Gensol Engineering, while PFC had extended ₹633 crore – taking the total exposure to ₹977 crore. The funds were intended for the purchase of electric vehicles (EVs) to be leased to ride-hailing platform BluSmart.
The controversy intensified after the suspension of BluSmart’s operations on April 17, which led to halted lease payments and heightened concerns of the loan account turning into an NPA.
IREDA also addressed concerns about falsified documents cited by credit rating agencies, clarifying that it had not issued the letters in question. Furthermore, the agency flagged a breach of contract after Gensol’s promoters allegedly diluted their shareholding without lender approval.
SEBI has already imposed a capital market ban on Anmol Singh Jaggi and Puneet Singh Jaggi, the promoters of Gensol and BluSmart, for alleged diversion of loan funds. The Jaggi brothers currently hold 62.65% of Gensol, with 81.6% of those shares pledged.
“IREDA is committed to acting responsibly and will update all stakeholders once the company’s assessment concludes. We urge all concerned parties to avoid speculation while the investigation is ongoing,” the agency said in its closing remarks.
