(BS)
Indian Renewable Energy Development Agency (Ireda), a state-run financier, has filed a petition under Section 7 of the Insolvency and Bankruptcy Code against Gensol Engineering after the company defaulted on a ₹510 crore loan, Ireda said in a stock exchange filing on Wednesday.
If the National Company Law Tribunal admits the insolvency petition, all creditors of the company are expected to file their claims with the court-appointed resolution professional for debt resolution, while the value of equity holdings is likely to be wiped out.
Gensol Engineering closed 5 per cent higher on Wednesday at ₹60 per share.
The company is facing multiple regulatory investigations, including a probe by the Securities and Exchange Board of India (Sebi) over alleged fund diversion by its promoters from the listed entity.
Following the Sebi order, in a letter to the exchanges, Anmol Singh Jaggi and his brother Puneet Singh Jaggi — the founders of Gensol Engineering and BluSmart Cabs — resigned from the Gensol board, saying their decision was in compliance with Sebi’s instructions. While Anmol was the managing director of Gensol, Puneet was the whole-time director.
Earlier, on April 25, Ireda initiated an internal review in line with Reserve Bank of India guidelines and its own due diligence protocols. Ireda said the promoters had diluted their shareholdings without the lenders’ approval, constituting a breach of contract. In light of this, Ireda filed a complaint on the above matters with the Economic Offences Wing against Gensol on April 24.
