New Delhi: In a significant move to recover dues from the troubled clean energy firm Gensol, the Debts Recovery Tribunal (DRT)–III, Delhi, has ordered Gensol Engineering Limited and its EV leasing subsidiary to maintain the status quo on secured assets and electric vehicles. The directive comes in response to recovery proceedings initiated by state-owned financiers Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), together seeking to recover ₹992 crore.
Tribunal Acts on ₹992 Crore Loan Default
The orders were passed by DRT Presiding Officer Shiv Kumar during virtual hearings held on May 22. IREDA has filed two Original Applications (OAs)—seeking ₹510 crore from Gensol Engineering and ₹218 crore from Gensol EV Lease Pvt Ltd. PFC has filed a separate application to recover ₹264 crore from Gensol Engineering.
Interim Relief Hearing Scheduled for May 28
The Tribunal directed all defendants to maintain the current condition of assets, including vehicles, pending further hearings. It also instructed IREDA and PFC to serve full OA documents to the defendants’ counsel within two days, and for the defense to file vakalatnamas within three days. Notices on interim relief requests are to be issued to all remaining parties. The next hearing on interim relief is scheduled for May 28, with the Tribunal making it clear that no further adjournments will be permitted.
Insolvency Action and Fund Misuse Allegations
In parallel to the DRT case, IREDA has also filed an insolvency petition against Gensol at the National Company Law Tribunal (NCLT), which has been admitted. PFC, while not pursuing insolvency, is invoking guarantees and collateral to maximize recovery.
The loans in question were extended to Gensol for the purchase of electric vehicles intended for leasing to ride-hailing platform BluSmart. However, both firms – promoted by brothers Anmol Singh Jaggi and Puneet Singh Jaggi – are now under SEBI scrutiny for alleged diversion of sanctioned funds.
SEBI Action and Leadership Resignations
The Securities and Exchange Board of India (SEBI) has imposed capital market bans on both Jaggi brothers, prohibiting them from holding positions in any listed companies. These actions come in the wake of BluSmart suspending operations on April 17, triggering a default on lease payments and raising alarms among lenders over Gensol’s potential to become a non-performing asset (NPA).
On May 12, Gensol Engineering confirmed in a stock exchange filing that Anmol Singh Jaggi and Puneet Singh Jaggi had resigned from their positions as Managing Director and Whole-time Director, respectively.
Read Also: PFC Flags ₹263 Crore Gensol Loan as Fraud, Recovers Partial Dues Amid EV Delivery Irregularities
Outlook: A Crucial Test for Green Finance Governance
As the legal and regulatory proceedings unfold, the Gensol case is shaping up to be a pivotal moment for India’s clean energy finance ecosystem. The outcome could have far-reaching implications for governance, transparency, and lender confidence in the fast-growing electric mobility sector.
