Gensol Engineering Faces Insolvency Battle Amid SEBI Sanctions

The National Company Law Tribunal (NCLT) has served notice to Gensol Engineering following an insolvency plea by the Indian Renewable Energy Development Agency. The company is accused of defaulting on Rs 510 crore. This issue arose after SEBI's interim order barred Gensol from securities markets for fund diversion and governance lapses.

The National Company Law Tribunal (NCLT) has put Gensol Engineering on notice, responding to an insolvency plea filed by the Indian Renewable Energy Development Agency (Ireda). This move marks the next chapter in Gensol's ongoing financial and regulatory troubles.

Gensol Engineering is facing serious allegations, including a default of Rs 510 crore. These troubles began when the Securities and Exchange Board of India (SEBI) delivered an interim order, barring Gensol and its promoters, Anmol and Puneet Singh Jaggi, from participating in the securities markets due to accusations of fund diversion and governance issues.

The interim order from SEBI led to the departure of Anmol Singh Jaggi as Managing Director and Puneet Singh Jaggi as Whole-time Director earlier this month. Gensol Engineering's appeal has been disposed of by the Securities Appellate Tribunal (SAT), but the company is allowed to respond to SEBI's order to potentially reverse some trade restrictions.

(With inputs from agencies.)