NCLT directs insolvency against Gensol, Gensol EV Lease; appoints IRP

New Delhi: The National Company Law Tribunal on Friday directed to initiate insolvency proceedings against Gensol Engineering and Gensol EV Lease after admitting the petitions filed by the Indian Renewable Energy Development Agency.

The Ahmedabad bench of the insolvency tribunal appointed interim resolution professionals for both debt-ridden companies after suspending their respective boards.

In the matter of Gensol Engineering, a two-member NCLT bench said Indian Renewable Energy Development Agency (IREDA) has established a financial debt of Rs 510 crore by the company through ledger extracts, TRA statements, demand notices, and NeSL records.

"The Respondent/Corporate Debtor Gensol Engineering Ltd is admitted in the Corporate Insolvency Resolution Process (CIRP) under section 7 of the IBС, 2016," the National Company Law Tribunal (NCLT) said in a 29-page order.

Gensol is engaged in the business of developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.

In another petition filed against Gensol EV Lease by IREDA, the NCLT said a default of Rs 218.95 crore is established.

The tribunal has placed Gensol Engineering and Gensol EV Lease under the protection of moratorium as per the provisions of the Insolvency & Bankruptcy Code and appointed Keshav Khaneja as the interim resolution professional (IRP) to run the affairs of the company.

"The IRP is expected to take full charge of the corporate debtor's assets and documents without any delay whatsoever. He is also free to take police assistance in this regard, and this Court, hereby, directs the police authorities to render all assistance as may be required by the IRP in this regard,” said the NCLT bench.

It also directed all personnel connected with Gensol Engineering, its promoters, or any other person associated with its management to extend every assistance and cooperation to the IRP.

The NCLT bench, comprising Judicial Member Shammi Khan and Technical Member Sanjeev Kumar Sharma, has also directed the IRP to submit a "periodical report" on the progress of the CIRP (Corporate Insolvency Resolution Process) in respect of the Corporate Debtor (Gensol).

Similarly, for Gensol EV Lease, in the business of leasing electric vehicles and related infrastructure, the NCLT said it had also repayment obligations for the loan taken by Gensol Engineering.

Defaults against it were triggered by cross-default clauses linked to payment failures by Gensol Engineering on its facilities.

On May 28, the NCLT ordered to freeze bank and other accounts, restrained the trading of securities and directed asset disclosures of Gensol Engineering and 16 other companies and their promoters.

This was challenged by two Gensol Group entities -- BluSmart Premium Feet and Matrix Gas and Renewable -- before the appellate tribunal NCLAT, which on June 4 directed them to approach the NCLT.

Gensol's troubles started after an interim order on April 15 by the Securities and Exchange Board of India (SEBI) barred Gensol Engineering and promoters -- Anmol Singh Jaggi and Puneet Singh Jaggi -- from the securities markets till further orders in a fund diversion and governance lapses case.

On May 12, the Jaggi brothers resigned from the company following market regulator Sebi's interim order. Anmol Singh Jaggi held the post of Managing Director while Puneet Singh Jaggi was a Whole-time Director.

In its order on April 15, 2025, the Sebi also barred the Jaggi brothers from holding the position of a director or key managerial personnel in Gensol until further orders.

The order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.