NCLT Initiates Insolvency Proceedings Against Gensol Engineering and Gensol EV Lease

The National Company Law Tribunal has initiated insolvency proceedings against Gensol Engineering and Gensol EV Lease. This follows petitions from the Indian Renewable Energy Development Agency, citing debts of Rs 510 crore and Rs 218.95 crore, respectively. Interim resolution professionals will oversee the restructuring process.

The National Company Law Tribunal (NCLT) has commenced insolvency proceedings against Gensol Engineering and Gensol EV Lease, after receiving petitions from the Indian Renewable Energy Development Agency (IREDA). The tribunal took this step following confirmed financial debts of Rs 510 crore for Gensol Engineering and Rs 218.95 crore for Gensol EV Lease.

The Ahmedabad bench of the tribunal appointed interim resolution professionals to manage the restructuring of both companies, which are now under the protection of a moratorium according to the Insolvency & Bankruptcy Code. Keshav Khaneja has been named as the interim resolution professional responsible for overseeing company affairs.

Gensol, involved in renewable energy projects, faces significant challenges. An interim order by SEBI exposed fund diversion and governance lapses, leading to the resignation of key figures Anmol Singh Jaggi and Puneet Singh Jaggi. Tribunal orders have frozen company accounts and restrained the trading of securities, triggering broader scrutiny and legal challenges.

(With inputs from agencies.)