The Indian Renewable Energy Development Agency has filed an insolvency plea against Gensol Engineering for defaulting on a Rs 510 crore payment. The development came weeks after SEBI banned the company and its promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities markets till further orders in a fund diversion and governance lapses case. Meanwhile Gensol said on Wednesday that the Securities Appellate Tribunal had allowed it to file a response to the Sebi interim order.
The state-run financier explained in a stock exchange filing that it had filed a petition under Section 7 of the insolvency code after Gensol failed to replay a Rs 510 crore loan. The value of equity holdings in the company is likely to be wiped out if the National Company Law Tribunal admits the petition. Such a situation would also require all creditors of the company to file their claims with the court-appointed resolution professional for debt resolution.
IREDA had previously filed a complaint with the Economic Offences Wing against Gensol in April — alleging falsification of documents and initiating an internal review. Another lender, Power Finance Corp, has also filed similar allegations.
Gensol Managing Director Anmol Singh Jaggi and his brother Puneet Singh Jaggi had tended their resignations earlier this week — a month after the Securities and Exchange Board of India barred them from holding key positions in the company. SEBI had alleged that the duo were involved in diverting funds raised by the company towards personal luxury purchases and debt defaults. The regulatory body has also claimed that the company defaulted on loans, including those taken to finance electric vehicle purchased for BluSmart Mobility. In late April, India’s financial crime-fighting agency raided Gensol’s premises, seizing documents and electronic devices. SEBI ordered a forensic audit of the company.
(With inputs from agencies)