The corporate wheels of Gensol Engineering Ltd—the parent of electric mobility brand BluSmart—have officially skidded off the road.
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has admitted Gensol into the corporate insolvency resolution process, acting on a plea filed by the Indian Renewable Energy Development Agency (IREDA). Gensol, conspicuously silent on the core issue of debt, did not raise any defence disputing its liability—an omission that sealed its fate.
A bench led by Judicial Member Shammi Khan and Technical Member Sanjeev Kumar delivered the decision, opting to sidestep IREDA’s nominee for resolution professional and instead selecting one from the official IBBI list. The detailed order is still awaited.
This insolvency plea is only the latest chapter in what has become a corporate unraveling of cinematic proportions. On April 15, the Securities and Exchange Board of India (SEBI) dropped a bombshell interim order, accusing Gensol of siphoning off hundreds of crores through dubious related-party transactions. Among the allegations: using public and borrowed funds to splurge on luxury indulgences—including a premium apartment—and furnishing forged documents to credit agencies.
SEBI’s findings were scathing. Gensol, it said, inflated its electric vehicle procurement numbers and misled investors, all while its actual factory output barely sputtered. In response, the regulator slammed the brakes, banning the company and its top brass—Anmol Singh Jaggi and Puneet Singh Jaggi—from the securities market and corporate directorships.
When Gensol took the fight to the Securities Appellate Tribunal, it found no respite. The tribunal refused to stay SEBI’s order and instead instructed Gensol to file its reply, directing SEBI to pass a final decision post-hearing.
As financial and legal dominos continued to fall, the NCLT on May 28 froze Gensol’s bank and demat accounts, banned trading of its securities, and ordered sweeping asset disclosures. The Ministry of Corporate Affairs also piled on, invoking Sections 241, 242, 246, and 339 of the Companies Act to initiate proceedings against Gensol and its allied firms for serious lapses in governance, fund diversion, and financial misreporting.
Adding to Gensol’s woes, the Debt Recovery Tribunal (DRT) in Delhi granted interim relief to IREDA and Power Finance Corporation in cases collectively involving claims of nearly ₹1,000 crore. The DRT ordered the freezing of secured assets, court receiver appointments to seize BluSmart’s EV fleet, and a bar on transferring intellectual property or tech assets.
IREDA’s insolvency petition—filed in May—gathered momentum even as a swarm of vehicle lessors continued to seek protection through the Delhi High Court for EVs leased to BluSmart, now caught in the eye of this corporate storm.
Gensol’s electric ambitions now lie in limbo, as its future is handed over to insolvency professionals—and possibly, the auction block.
