Energy Finance Company (PFC), a state-run non-banking monetary firm, has filed a complaint with the Economic Offences Wing (EOW) against Gensol Engineering Ltd (GEL) for allegedly submitting falsified documents. This motion follows an investigation initiated beneath PFC’s anti-fraud coverage, following irregularities found throughout a routine credit standing overview. “PFC is actively pursuing additional actions within the instantaneous case and exploring all attainable choices,” the corporate acknowledged in its official launch.
The controversy erupted when credit standing companies tried to confirm documents submitted by Gensol, which offers photo voltaic consulting and engineering companies. As an alternative of the requested time period mortgage statements, Gensol is reported to have submitted “conduct letters” from Ireda and PFC alongside with “no objection certificates.”
Such documents are often required for withdrawing credit score rankings, not for the needs requested. PFC clarified it didn’t subject any letters to the credit standing companies concerned, specifically CARE and ICRA, information company PTI reported.
In January 2023, PFC sanctioned a mortgage of Rs 633 crore to Gensol Engineering as a part of its assist for the federal government’s electrical car (EV) adoption technique, beneath programmes like FAME and PM e-bus Seva. The funds have been meant to obtain 6,000 electrical autos, together with ₹587 crore for leasing 5,000 electrical 4-wheelers to BluSmart Mobility and Rs 46 crore for 1,000 electrical three-wheelers for cargo operations. Nevertheless, the three-wheeler mortgage was not utilised, and solely Rs 352 crore has been disbursed for the 4-wheelers.
“Repayments on the disbursed quantity had commenced with Rs 45 crore repaid, leaving a principal excellent of Rs 307 crore as on April 18, 2025.
“Till January 31, 2025, Gensol was servicing its dues often. In This autumn’25, PFC invoked the Debt Service Reserve Account (DSRA) to clear February and March 2025 dues,” the corporate mentioned, including “PFC is actively pursuing additional actions within the instantaneous case and exploring all attainable choices”.
As of now, Gensol has delivered 2,741 electrical autos, which have been hypothecated to PFC, in response to third-occasion verifications. In April 2025, Gensol repaid Rs 45 crore, leaving an impressive steadiness of Rs 307 crore.
The corporate was often servicing its dues till January 2025. Within the fourth quarter of FY25, PFC invoked the Debt Service Reserve Account (DSRA) to settle dues for February and March 2025. PFC holds additional monetary safeguards together with pledges on Gensol’s fairness shares, non-convertible debentures, and ensures from each Gensol Ventures Personal Restricted and its promoters.
The Securities and Alternate Board of India (Sebi) not too long ago took motion against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, in a case involving fund diversion and governance lapses. Sebi has barred them from collaborating within the securities markets till additional discover.
Moreover, Sebi has instructed Gensol Engineering Ltd (GEL) to droop the inventory cut up that was beforehand introduced by the corporate. The promoters have additionally been prohibited from holding the place of a director or key managerial personnel in any listed agency.
This motion was initiated after Sebi acquired a complaint in June of final 12 months relating to the manipulation of share value and funds diversion from GEL. Sebi has since been investigating the matter.
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