Ireda moves DRT against Gensol entities

MUMBAI: Indian Renewable Energy Development Agency ( Ireda ) moved the Debt Recovery Tribunal (DRT), Delhi, against Gensol Engineering and Gensol EV Lease over a default of Rs 729 crore, the state-owned power financier said in a stock exchange filing on Wednesday. The application was filed on May 20 under Sec 19 of The Recovery of Debts and Bankruptcy Act, 1993.

The company is seeking to recover Rs 510 crore from Gensol Engineering and Rs 219 crore from Gensol EV Lease. Ireda has also taken the two Gensol entities to the Insolvency court .

Troubles at Gensol unfolded after a Sebi investigation last month revealed that the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, systematically used loans from several creditors, taken in the name of Gensol, to buy a luxury flat, inflate Gensol's stock price, for personal use through their private ventures, and for purposes other than those for which the loans were taken. They were also found to have forged no-default letters from lenders like Ireda and PFC to falsely project there was no default by the company. In April, Ireda filed a complaint with the Economic Offences Wing (EoW) against Gensol.