The Debts Recovery Tribunal (DRT)-III, Delhi, has directed Gensol Engineering Ltd and its subsidiary, Gensol EV Lease Pvt. Ltd, to maintain the status quo on their secured assets and vehicles.
State-run lenders—the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corp. Ltd (PFC)—had approached the tribunal seeking to recover dues totalling approximately ₹992 crore.
The 22 May order was issued by DRT presiding officer Shiv Kumar, who also issued notices to the Gensol entities and sought their responses.
“In the meantime, defendants (Gensol) are directed to maintain status quo with regard to secured assets/vehicles till the next date fixed,” the tribunal said. The matter is scheduled to be heard next on 28 May.
In an exchange filing on 21 May, IREDA said it had filed an original application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, before the DRT-III on 20 May. It is seeking recovery of ₹510 crore from Gensol Engineering and ₹218.95 crore from Gensol EV Lease.
To be sure, IREDA has already initiated bankruptcy proceedings against the two entities. The National Company Law Tribunal (NCLT), Ahmedabad, admitted the matter on 16 May and is set to hear the insolvency plea on 3 June.
During the NCLT proceedings, IREDA described the company as “headless” and urged the tribunal to immediately appoint an interim resolution professional to safeguard Gensol’s assets, alleging that its directors had fled following the Securities and Exchange Board of India’s (Sebi) order.
In an interim order on 15 April, Sebi barred Gensol Engineering and its promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from accessing the securities market, citing governance lapses and fund diversion. It was probing a June 2024 complaint that alleged the two manipulated the share price and misappropriated funds.
The markets regulator also prohibited them from holding any directorial or key managerial positions at Gensol until further notice.
According to the regulator, Gensol secured ₹977.75 crore in loans, including ₹663.89 crore earmarked for the purchase of 6,400 electric vehicles, which were later leased to BluSmart, a related party.
It accused the promoters of treating the listed company as a personal entity, using funds to buy a luxury apartment in The Camellias, DLF Gurugram, purchase a premium golf set, pay off personal credit card bills, and transfer money to close relatives.
Sebi also directed Gensol to appoint a forensic auditor to examine its books and related-party transactions.
On 12 May, the Jaggi brothers resigned from their posts as managing director and whole-time director, respectively.
