Power Finance Corporation Pursues Legal Action Against Gensol Engineering Over Pending Dues

Power Finance Corporation is actively pursuing actions and exploring options to reclaim pending dues of Rs 307 crore from Gensol Engineering, under scrutiny by SEBI for fund diversions. A complaint regarding falsified documents is filed with the Economic Offences Wing. Investigations are ongoing to protect its interests.

Power Finance Corporation (PFC), a state-owned entity, is actively pursuing legal action to recover Rs 307 crore pending from Gensol Engineering amid allegations of fund diversion and governance lapses scrutinized by market regulator SEBI.

In January 2023, PFC approved a Rs 633 crore loan for Gensol Engineering to procure electric vehicles, earmarking Rs 587 crore for passenger EVs procured by BluSmart Mobility. While Rs 352 crore has been disbursed and Rs 45 crore repaid, Rs 307 crore remains unsettled.

Addressing falsified documents reportedly filed by Gensol, PFC has lodged a complaint with the Economic Offences Wing, asserting its commitment to safeguarding its interests and ensuring loan recovery with transparency, while internal investigations continue under its Anti-Fraud Policy.

(With inputs from agencies.)