Macro● Neutral
IREDA Classifies Gensol Engineering, EV Unit as Fraud
IREDA declared Gensol Engineering and its EV unit as fraud accounts, with ₹672 crore dues, triggering recovery and insolvency proceedings after alleged misappropriation and forgery.
Continue with
State-run Indian Renewable Energy Development Agency (IREDA) has classified the loan accounts of Gensol Engineering Ltd and its subsidiary Gensol EV Lease Ltd as fraud. The lender reported the matter to the Reserve Bank of India.
In a stock exchange filing on Friday, IREDA said the accounts were declared fraud under the RBI's Master Direction on Fraud Risk Management for non-banking financial companies. The classification is based on alleged misappropriation and criminal breach of trust. For Gensol Engineering, IREDA also cited forgery.
Gensol Engineering's outstanding dues stand at ₹453.77 crore. Gensol EV Lease owes ₹218.97 crore. IREDA has already made provisions covering 85% of the outstanding amount in both accounts as of March 31, 2026.
The fraud classification follows a series of regulatory actions against Gensol. In April 2025, the Securities and Exchange Board of India (SEBI) issued an interim order alleging diversion of company funds and falsification of documents submitted to lenders. SEBI barred promoters Anmol Singh Jaggi and Puneet Singh Jaggi from holding key managerial positions and from accessing the securities market.