Ireda files insolvency plea against Gensol over Rs 510 crore default

Indian Renewable Energy Development Agency ( Ireda) has sought insolvency proceedings against Gensol Engineering over a default of Rs 510 crore, according to an exchange filing from the power financier on Wednesday. The plea has been filed under Section 7 of the Insolvency and Bankruptcy Code.

Gensol had borrowed Rs 977.75 crore from Ireda and Power Finance Corporation, out of which Rs 663.89 crore was for purchasing electric vehicles for BluSmart, an ride hailing platform founded by the company's cofounder Anmol Singh Jaggi. In April, both lenders filed complaints with the Economic Offences Wing against Gensol, alleging falsification of documents related to debt servicing status.

Anmol Jaggi and his brother Puneet Singh Jaggi, cofounders of Gensol, resigned from the company on Tuesday, a month after Securities and Exchange Board of India (Sebi) barred them from holding key positions in the company. The markets regulator had alleged that the brothers were involved in diverting funds raised by the company towards personal luxury purchases and debt defaults. It also claimed Gensol defaulted on loans, including those taken to finance electric vehicles purchased for BluSmart Mobility.

In late April, the Enforcement Directorate raided Gensol's premises, seizing documents and electronic devices. Sebi ordered a forensic audit of the company.