The battle lines are drawn—but frozen in place. The Debts Recovery Tribunal (DRT) in Delhi has ordered Gensol Engineering Limited and its electric vehicle arm, Gensol EV Lease Pvt Ltd, to hold steady on their secured assets and vehicles. This comes amid recovery efforts by two state-backed lenders eyeing nearly ₹1,000 crore in dues.
Here’s the breakdown: The Indian Renewable Energy Development Agency (IREDA) is chasing a combined ₹728 crore from Gensol’s entities—₹510 crore from the engineering firm and ₹218 crore from the EV lease arm. Meanwhile, the Power Finance Corporation (PFC) seeks ₹264 crore from Gensol Engineering under a separate financing default. Together, that’s just shy of a staggering ₹992 crore.
The tribunal’s directive, issued by Presiding Officer Shiv Kumar during virtual hearings, holds the status quo on all secured assets and vehicles for now. Both lenders must hand over full documentation of their claims to Gensol’s legal team, and the case gears up for a decisive hearing on May 28, with no more delays allowed.
This development follows a swirl of troubles for Gensol. The National Company Law Tribunal (NCLT) at Ahmedabad recently issued a notice for insolvency proceedings after IREDA’s plea related to the ₹510 crore loan default.
The plot thickened when SEBI slapped Gensol in April with allegations of misappropriating hundreds of crores via shell companies, channeling borrowed funds into luxury buys, and submitting forged documents to credit agencies. The regulator also accused Gensol of inflating its electric vehicle procurement numbers to mislead investors, while actual operations remained minimal.
SEBI’s crackdown barred Gensol and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from securities markets and key managerial roles. An appeal to pause this action was rejected by the Securities Appellate Tribunal (SAT), which ordered Gensol to respond promptly and left SEBI to finalize its verdict within a month.
Adding to the pressure, lessors have repeatedly knocked on Delhi High Court’s door to safeguard their leased EV fleets tied to Gensol’s subsidiary BluSmart. The court recently ordered the seizure of 129 electric vehicles linked to a ₹15 crore default, barred Gensol and BluSmart from transferring another 220 vehicles, and put 95 more under court-appointed custody after complaints by financiers.
From electric vehicles to legal vehicles, Gensol’s financial engine faces heavy revving with every court order and regulator move. The stage is set for a high-stakes showdown, but for now, the assets remain parked and frozen in legal limbo.
