Gensol Promoters Breach Contract Amid EV Loan Scandal

The Indian Renewable Energy Development Agency (IREDA) has accused Gensol Engineering's promoters of breaching contract terms by diluting their shareholding without lender approval. IREDA has filed a complaint with the Economic Offences Wing and is reviewing the case. The situation may affect Gensol’s financial stability and loan status.

In a significant development involving Gensol Engineering, the Indian Renewable Energy Development Agency (IREDA) has alleged that the company's promoters violated contractual agreements. According to IREDA, the promoters diluted their shareholding in the firm without seeking approval from the lenders, prompting the agency to file a complaint with the Economic Offences Wing on April 24.

IREDA announced it has launched an internal review following the breach, in line with Reserve Bank of India guidelines and its protocols. While Gensol's financial accounts face stress, they have not yet been classified as non-performing assets (NPA).

Amidst these proceedings, the promoters, brothers Anmol and Puneet Singh Jaggi, face regulatory scrutiny from the Securities and Exchange Board of India (SEBI) over alleged diversion of loan funds intended for electric vehicle purchases. SEBI has placed a ban on the Jaggis, barring them from executive roles in listed companies, as further investigations unfold.

(With inputs from agencies.)