New Delhi: The Indian Renewable Energy Development Agency (IREDA), a government-run organisation, has filed a formal complaint against Gensol Engineering Ltd with the Economic Offences Wing (EoW) of the Delhi Police. IREDA has accused Gensol of submitting fake documents and violating agreements by selling promoters’ shares without approval.
Loan Funds Allegedly Misused
Between financial years 2021-22 and 2023-24, IREDA and Power Finance Corporation (PFC) together gave loans of nearly Rs 664 crore to Gensol for purchasing electric cars. Gensol added Rs 166 crore in equity, making the total project size Rs 829.9 crore. However, the company reportedly bought only 4,704 electric cars instead of 6,400, and Rs 262.1 crore remains unaccounted for.
Fake Letters and Breach of Contract
According to IREDA, Gensol forged letters to make it appear that loan repayments were on track. These false documents were used to mislead credit rating agencies like ICRA and CARE. IREDA clarified that it never issued the letters mentioned in the ratings reports. The unauthorized sale of promoter shares is also considered a serious breach of contract.
SEBI Steps In, Promoters Barred
On April 15, the Securities and Exchange Board of India (SEBI) passed an interim order against Gensol’s promoters—Anmol Singh Jaggi and Puneet Singh Jaggi. They are now barred from trading in the stock market and from holding any important position in Gensol or other listed companies. SEBI also stopped Gensol’s planned stock split and ordered a forensic audit of the company’s finances.
Internal Review and Next Steps
IREDA has started an internal review based on RBI guidelines and will take action depending on the findings. Both IREDA and PFC say they are committed to recovering funds and protecting public money. IREDA has also asked people to avoid speculation while the investigation continues.
