Ahmedabad/New Delhi: In a major development on two fronts of corporate and strategic mineral affairs, the Ahmedabad bench of the National Company Law Tribunal (NCLT) has permitted the Central Government to attach the bank accounts and lockers of Gensol Engineering Limited, its ten subsidiaries, and several individuals, citing evidence of systemic fraud. Meanwhile, state-run Navratna company NLC India Limited (NLCIL) has bagged two key mineral blocks in a landmark auction held by the Ministry of Mines, marking its foray into the critical minerals space.
NCLT Greenlights Asset Seizure in Gensol Fraud Probe
The tribunal, in its order dated May 28, stated that multiple investigation reports and regulatory findings reveal gross violations of corporate governance norms by Gensol and related entities. These include the diversion of funds by promoter entities and rerouting of borrowings raised for specific purposes in a “fraudulent and illegal manner,” in violation of the Companies Act, 2013.
“It is averred that the Respondent companies are found to be in blatant violation of corporate governance norms… which amounts to gross violations of the Companies Act,” the order said.
The tribunal’s decision allows authorities to attach financial assets including bank accounts and lockers, as part of a broader investigation into alleged financial misconduct involving misuse of public and investor funds.
Gensol Engineering, a listed entity known for its engineering and energy services, has not yet issued a public response. The move intensifies regulatory scrutiny in the wake of increasing concerns over corporate fraud in India’s fast-expanding clean energy and infrastructure sectors.
NLCIL Bags Two Key Mineral Blocks in Mines Ministry Auction
In a parallel development with long-term economic implications, NLC India Ltd has secured two strategic mineral blocks – Semhardih Phosphorite and Limestone Block and Raipura Phosphorite and Limestone Block—in an e-auction held on May 15 and 16 by the Ministry of Mines.
This marks a major diversification for the lignite-focused PSU, which has traditionally operated in coal mining and thermal power generation. The new blocks will help NLCIL expand into the production of phosphorite and limestone, key components for fertilizer manufacturing and industrial use, aligning with India’s national objectives for critical mineral security.
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The company is expected to initiate the process for obtaining statutory clearances and developing the blocks for commercial extraction in the coming months.
A senior official from NLCIL noted that the acquisition is “strategic and future-facing,” adding that the company aims to support the government’s broader mineral security roadmap under the Critical Minerals Initiative.
