New Delhi: The Indian Renewable Energy Development Agency (IREDA), a government-owned company, has taken legal action to recover around Rs 729 crore from Gensol Engineering Ltd and its subsidiary, Gensol EV Lease Pvt Ltd. On May 20, 2025, IREDA filed an original application with the Debt Recovery Tribunal (DRT) in Delhi under the Recovery of Debts and Bankruptcy Act, 1993.
According to IREDA’s exchange filing, the total amount being claimed is Rs 510 crore from Gensol Engineering and Rs 218.95 crore from Gensol EV Lease Pvt Ltd. Before this, on May 14 and 15, IREDA had also filed bankruptcy applications against both companies under the Insolvency and Bankruptcy Code, 2016.
This legal move comes after serious concerns were raised by the Securities and Exchange Board of India (SEBI). In April 2025, SEBI passed an interim order against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. SEBI accused them of misusing the company’s funds and committing fraud. The Jaggi brothers were barred from holding any top positions in the company or participating in the stock market.
SEBI said the company’s promoters treated Gensol as their personal firm. They allegedly used company money to buy luxury items like a high-end apartment, expensive golf equipment, and paid personal credit card bills. Funds were also transferred to family members. SEBI also said the company tried to fool the market regulator and lenders by submitting fake documents.
The company had borrowed a total of Rs 977.75 crore, including Rs 663.89 crore meant for buying 6,400 electric vehicles. These vehicles were then leased to BluSmart, a related company. SEBI said these fund transfers were done in a complex way to hide the real purpose. It added that the company’s internal financial controls were very weak.
SEBI has now asked the company to appoint a forensic auditor to deeply check its finances and those of its related companies.
(With PTI Inputs)
