IREDA Drags Gensol to Debt Recovery Tribunal Over INR 729 Cr Recovery

The Delhi Debt Recovery Tribunal (DRT) has been contacted by the Indian Renewable Energy Development Agency (IREDA) to recover around INR 729 Cr from Gensol Engineering after the agency filed an insolvency plea against the company.

The company filed an original application under Section 19 of The Recovery of Debts and Bankruptcy Act, 1993, before the Hon'ble Debt Recovery Tribunal Delhi on May 20, 2025, for a default amount of INR 510 Cr and INR 218.95 Cr against M/s Gensol Engineering Limited and M/s Gensol EV Lease Pvt Limited, respectively, according to an exchange filing from IREDA.

The DRTs can be contacted by banks and other financial organisations to collect secured debt from borrowers. Power Finance Corporation (PFC) is also looking into recovery via the DRT route, according to a media outlet.

Owners of the Firm Used Company’s Money for Own Benefits: SEBI

More than a month has passed since the Securities and Exchange Board of India (SEBI) declared in an interim decision that Anmol Singh Jaggi and Puneet Singh Jaggi, the promoters of Gensol, had exploited the company's money as a "piggybank."

 Between FY22 and FY24, Gensol borrowed INR 977.75 Cr from PFC and IREDA. The business planned to lease 6,400 EVs to BluSmart for INR 663.89 Cr. However, according to a SEBI decision, only 4,704 vehicles were purchased, leaving INR 262.13 Cr unaccounted for.

 The market's watchdog claimed in an interim decision that the promoters fabricated documents, manipulated the company's stock price, and misled rating agencies and shareholders. The Jaggi siblings were also prohibited by SEBI from serving on any boards and from trading in securities.

BluSmart taken a Massive Hit

BluSmart, a Gensol-affiliated EV ride-hailing firm, was likewise impacted owing to the ongoing chaos. In addition, the Jaggi brothers are among the startup's cofounders. BluSmart ceased operations after the SEBI ruling, which left 800 full-time employees and thousands of drivers in the dark.

The Enforcement Directorate (ED) then raided the home of the Jaggi brothers in late April and a number of locations connected to Gensol. The searches also resulted in Puneet's arrest. When the Delhi High Court (HC) gave him anticipatory bail and ordered the Delhi Police to give him a seven-day notice before making an arrest, he was given temporary protection a week later.

 Following the rumours, the Jaggi pair resigned and left the company earlier this month. In recent weeks, the Delhi High Court has issued consecutive orders prohibiting BluSmart and Gensol from alienating third parties or establishing third-party rights over their rented cars.