Gensol Group Faces Financial Trouble Due to Unpaid Debts
Court Accepts Insolvency Requests
The National Company Law Tribunal (NCLT) in Ahmedabad has started legal steps against Gensol Engineering (GEL) and its part Gensol EV Lease (GEVL). This is because they did not pay their debts to the Indian Renewable Energy Development Agency (Ireda).
Gensol Engineering’s Unpaid Debt
Gensol Engineering has not paid Rs 510.10 crore to Ireda. This money was borrowed for different projects. The court agreed that Ireda proved the debt and the failure to pay under the Insolvency and Bankruptcy Code (IBC), 2016.
Gensol EV Lease’s Unpaid Debt
Gensol EV Lease has not paid Rs 218.95 crore. This money was borrowed for electric vehicle leasing. The company could not pay because Gensol Engineering failed to repay its loans. The company’s leaders, Anmol Singh Jaggi and Puneet Singh Jaggi, personally promised to pay the debt. Gensol Engineering also promised to pay.
Court Cases and Arguments
Gensol EV Lease said that the unpaid debts were announced too early. But the court did not agree. It said that the rules about unpaid debts in the loan agreements were correct. The court also said that GEVL did not pay the debts in the given time.
The court chose Keshav Khaneja to manage the process. This was after GEVL complained about a conflict of interest in Ireda’s choice.
Legal Protection Now in Place
Now that both cases are accepted, legal protections are in place. This means that no legal actions, asset sales, or debt recovery can happen against Gensol Engineering and Gensol EV Lease.
Investigations by Sebi
Gensol’s problems started after an investigation by Sebi. The investigation found that the company’s leaders used loans for personal benefits. They also faked no-debt letters from lenders like Ireda and PFC.
Here are some key findings:
- Leaders used loans to buy a luxury flat.
- Loans were used to increase Gensol’s stock price.
- Money was used for personal businesses.
- Leaders faked no-debt letters.
