BENGALURU: The National Company Law Tribunal (NCLT), Ahmedabad has admitted two separate insolvency petitions filed by Indian Renewable Energy Development Agency (Ireda) against Gensol Engineering (GEL) and its subsidiary Gensol EV Lease (GEVL), initiating corporate insolvency resolution processes (CIRP) against both companies.In the case of Gensol Engineering, the tribunal admitted Ireda’s petition for defaulted dues amounting to Rs 510.10 crore. The defaults stemmed from term loan facilities extended by Ireda for various projects undertaken by GEL. The tribunal held that Ireda had demonstrated the existence of financial debt and default under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016.Separately, the tribunal admitted insolvency proceedings against Gensol EV Lease for outstanding dues of Rs 218.95 crore. According to Ireda’s petition, GEVL had availed multiple term loans for electric vehicle leasing and related infrastructure. The defaults were triggered through cross-default provisions linked to Gensol Engineering’s repayment failures. Personal guarantees by promoters Anmol Singh Jaggi and Puneet Singh Jaggi and corporate guarantees by Gensol Engineering, were also provided to secure the borrowings.Gensol EV Lease contested the maintainability of the petition, arguing that the defaults were premature, primarily arising from GEL’s repayment delays, and that the outstanding debt had not crystallised. The tribunal rejected these objections, holding that the cross-default clauses in the loan agreements were valid and contractually enforceable. It also noted that GEVL failed to cure the defaults within the stipulated time frame after being issued notices by Ireda.The tribunal, however, accepted GEVL’s objection concerning conflict of interest in Ireda’s nomination of Pulkit Gupta as interim resolution professional, and appointed Keshav Khaneja as IRP to oversee the CIRP process.With the admission of both matters, moratoriums have come into effect under Section 14 of the IBC, prohibiting legal proceedings, asset transfers and recovery actions against both Gensol Engineering and Gensol EV Lease.Troubles at Gensol unfolded after a Sebi investigations two months ago revealed that the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, systematically used loans from several creditors, taken in the name of Gensol, to buy a luxury flat, inflate Gensol’s stock price, for personal use through their private ventures and for purposes other than those for which the loans were taken. They were also found to have forged no-default letters from lenders like Ireda and PFC to falsely project there was no default by the company.
