New Delhi: Ahmedabad benches from the National Company Court Tribunal (NCLT) issued on Friday about ₹India Renewable Energy Development Agency Ltd. (IREDA) has filed a $5.1 billion bankruptcy claim.
The bench, composed of judicial member Shammi Khan and technical member Sanjeev Kumar Sharma, rejected the IREDA request to appoint an interim resolution professional (IRP) at the initial hearing today, noting that Gensol Engineering must be heard first.
Ireda’s lawyers advocate immediate oversight, claiming that the company had “headless” after fleeing directors during regulatory scrutiny. The lawyer believes: “Sir, the company is now headless under the order of SEBI (SEC) in India). The directors have gone out and the company has a project worth rupees. Someone needs to manage the show.”
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In its plea, IREDA claimed that Gensol claimed “a complete segmentation of internal control and corporate governance norms” and accused the promoters of running a public company “as if they were their proprietary companies.”
The request also highlights Gensol’s “substantive order book” that includes strategically significant renewable energy EPC contracts granted by government and public sector entities and is known as a “capital-intensive” project.
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The next hearing is scheduled to be held on June 3.
On May 14, IREDA revealed that it had filed an application under Section 7 of the Bankruptcy and Insolvency Act, on the grounds that ₹Gensol’s Rs 510 crore. This follows an April 25 notice, in which IREDA warned of alleged breach of contract legal proceedings.
This is the latest blow the company has caused from regulatory investigations and what is called the highest leadership capability.
Gensol’s trouble began with Sebi’s temporary order on April 15, which accused the promoters Anmol Singh Jaggi and Puneet Singh Jaggi of misappropriation of funds used for luxury purchases and defaulted on loans, including loans related to electric vehicles (EVS), which the company acquired Anmol’s ride for taking the ride.
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SEBI also claims that despite the minimal activity of its factory, Gensol misled investors who have overstated their claims on its electric vehicle procurement.
Anmol and Puneet Singh Jaggi resigned from the company on May 6 under growing pressure. Their exports come nearly a month after Sebi banned them from holding any leadership position.
A day later, the U.S. Securities Appeals Court (SAT) refused to hold the SEBI’s interim order, directing Gensol to respond within four weeks of receiving the reply and issue the final order of SEBI.
Gensol borrowed ₹977.75 million from IREDA and Power Finance Corp. (PFC), including ₹Rs 663.89 crore, designated for electric vehicle procurement in Blusmart. In April, both lenders filed complaints with the economic crime department, alleging for forgery of documents related to loan services.
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The Enforcement Bureau raided Gensol’s office in late April, seizing documents and electronic records. After that, Sebi ordered forensic review.
Meanwhile, the Delhi High Court ordered the seizure of 698 EV operated by Gensol and Blusmart in response to petitions filed by lenders and lessors over the past three weeks. Gensol, which claims to own a fleet of 8,000 electric vehicles, faces multiple loan and lease default claims.
