NCLAT Denies Immediate Relief in Gensol Asset Freeze Case

The NCLAT denied immediate relief against an NCLT order to freeze Gensol assets, directing BluSmart Premium and Matrix Gas and Renewable to seek redress at the NCLT. Allegations of fraudulent conduct necessitate asset freezes, with a hearing scheduled for June 12 amid concerns about operational hardships.

The National Company Law Appellate Tribunal (NCLAT) on Wednesday refused to grant immediate relief to Gensol in response to an NCLT order freezing the company's assets, including those of its promoters and affiliated entities.

BluSmart Premium and Matrix Gas and Renewable, two Gensol Group subsidiaries, have been advised to appeal to the Ahmedabad bench of the NCLT. The appeal points to the insufficient hearing they received before the May 28th asset freeze order.

The allegations indicate fraudulent activities, such as fund misallocation and governance rule breaches, warranting the freeze, as outlined by the Ministry of Corporate Affairs. Hearings are set for June 12, despite concerns the freeze could impede operational finances.

(With inputs from agencies.)