Gensol Engineering faces insolvency proceedings by IREDA over a ₹510 crore default. SEBI flagged governance lapses, fund misuse, and halted a stock split. Top executives resigned after being barred. PFC also reported ₹307 crore unpaid dues, intensifying the company’s crisis.
In the past month, Gensol Engineering—parent company of BluSmart—has found itself entangled in a series of serious developments following SEBI’s interim order. The company has seen high-profile resignations, legal complaints, and now, an insolvency petition.
Most recently, the Indian Renewable Energy Development Agency (IREDA), a government-owned entity, filed for insolvency proceedings against Gensol Engineering under Section 7 of the Insolvency and Bankruptcy Code. This move comes just weeks after IREDA also lodged a complaint with the Economic Offences Wing (EoW), alleging forged documents and unauthorised dilution of promoter stakes.
Now, IREDA has filed insolvency against Gensol Engineering that it has defaulted on payments amounting to ₹510 crore.
As the situation worsens, IREDA has initiated an internal audit in line with RBI norms, though the account hasn’t yet been classified as a Non-Performing Asset (NPA).
Meanwhile, Power Finance Corporation (PFC) also reported unpaid dues of ₹307 crore out of ₹352 crore lent to Gensol and has similarly filed a complaint with the EoW.
Adding to the turmoil, the company’s top executives—Anmol and Puneet Singh Jaggi—stepped down from their roles. SEBI had earlier barred the Jaggi brothers from serving as directors or key managerial personnel, a decision that preceded their official resignation.
Gensol Engineering’s share price hit back-to-back 52-week low after SEBI flagged major governance issues, including no manufacturing activity at its Pune EV plant, where only 2–3 workers were found during an NSE visit on April 9. Electricity bills also indicated minimal operations, with the highest bill at ₹1,57,037.01 in Dec 2024. The SEBI interim order, issued on April 15 following a June 2024 complaint, alleged price manipulation and fund misappropriation by promoters Anmol and Puneet Singh Jaggi.
SEBI also discovered funds diverted for personal use, including buying a luxury apartment and transfers to relatives. The Jaggi brothers were barred from the market and removed from managerial roles. SEBI also halted Gensol’s planned 1:10 stock split.
Disclaimer: The article is for informational purposes only and not investment advice.
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