State-run Non-Banking Financial Corporation (NBFC), Power Finance Corporation Ltd (PFC), has filed a complaint with the Economic Offences Wing (EoW) of the Delhi police against Gensol Engineering Ltd over alleged filing of falsified documents, a report by Moneycontrol stated citing the company statement. “PFC has filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents. PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations,” the company said in the statement.
The public sector undertaking (PSU) said it is also examining the matter internally under its “anti-fraud policy”, while clarifying that it did not issue any letters to credit rating agencies CARE and ICRA.
Earlier in March, both CARE Ratings and ICRA had downgraded Gensol’s credit ratings to “D”, which signifies a company’s default status, indicating delays in loan repayments.
Gensol, which included BluSmart under its umbrella, is accused of fabricating letters from its two lenders — PFC and the Indian Renewable Energy Development Agency Ltd (IREDA) — to falsely demonstrate that it was regular in debt servicing. The deception was uncovered when credit rating agencies started cross-checking the letters with the lenders.
The complaint filed by PFC with the EoQ will be the fourth simultaneous investigation against Gensol, BluSmart. Meanwhile, the company is also being investigated separately by SEBI and the Ministry of Corporate Affairs. Besides, the Enforcement Directorate (ED) is also likely to probe the company for alleged money laundering.
In January 2023, PFC had approved a loan of Rs 633 crore to Gensol Engineering Ltd as part of the government’s initiatives to promote electric vehicle (EV) adoption under schemes like FAME and PM E-bus Seva. According to PFC’s statement, the funds were intended for the purchase of 6,000 EVs—Rs 587 crore for 5,000 electric four-wheelers to be leased to BluSmart Mobility’s ride-hailing service, and Rs 46 crore for 1,000 electric three-wheelers for cargo use. However, the loan for the three-wheelers was never utilized.
It further added that out of the Rs 587 crore loan sanctioned towards electric four-wheeler vehicles, PFC had disbursed Rs 352 crore to Gensol for the leasing of 3,000 EVs to BluSmart Mobility. “Till date, 2,741 vehicles have been delivered and hypothecated to PFC as confirmed by third-party agencies appointed by PFC,” said the lender.
PFC said it is actively exploring all possible options to recover the outstanding principal amount of Rs 307 crore from Gensol Engineering Ltd. “Gensol had been servicing its dues regularly until January 31, 2025. However, in the fourth quarter of FY25, PFC invoked the Debt Service Reserve Account (DSRA) to clear dues for February and March 2025,” it said.
“Additionally, PFC has also pledged off Gensol’s equity shares and Non-Convertible Debentures (NCDs), a Corporate Guarantee from Gensol Ventures Private Limited, and Personal Guarantees from promoters. Liquid assets in the form of TRA balances, DRA balances, and Fixed Deposit by BluSmart with a lien marked to PFC are also in place,” it said.