The National Company Law Tribunal ( NCLT) has issued a notice to Gensol Engineering following the insolvency plea filed against it by the Indian Renewable Energy Development Agency ( Ireda), a report said.
A bench of NCLT judicial member Shammi Khan and technical member Sanjeev Kumar Sharma instructed notice to be served to Gensol on all modes and list the matter for hearing on June 3, according to a report by Bar & Bench.
Ireda had sought insolvency proceedings against Gensol Engineering over a default of Rs 510 crore, according to an exchange filing from the power financier on Wednesday. The plea has been filed under Section 7 of the Insolvency and Bankruptcy Code.
Gensol had borrowed Rs 977.75 crore from Ireda and Power Finance Corporation, out of which Rs 663.89 crore was for purchasing electric vehicles for BluSmart, an ride hailing platform founded by the company's cofounder Anmol Singh Jaggi. In April, both lenders filed complaints with the Economic Offences Wing against Gensol, alleging falsification of documents related to debt servicing status.
Lenders and leasing companies are looking to sell 1,500-2,000 electric vehicles which were listed on BluSmart, after the the EV ride-hailing platform suspended operations indefinitely last month after failing to raise funds amid allegations of financial irregularities against its founders, people familiar with the matter told ET.
The notice comes in the wake of cofounders Anmol Singh Jaggi and Puneet Singh Jaggi resigning from Gensol earlier this week, a month after the Securities and Exchange Board of India ( Sebi) barred them from holding key managerial positions following charges of wrongdoing against them. The markets regulator, in an April 15 interim order, charged them with diverting funds raised by the company for personal luxury expenses and defaults. The watchdog also ordered the company to put a stock split on hold.
The Sebi order came after a complaint was received in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter. Credit rating agencies Care Ratings and Icra downgraded certain credit facilities availed by Gensol due to delay in debt servicing. Icra further pointed out that debt servicing documents served by the company were apparently falsified.
In its order, Sebi noted that Gensol promoters were running a listed public company like a proprietary firm. GEL's funds were routed to related parties and used for unconnected expenses as if the company's funds were promoters' piggy banks.
A bench of NCLT judicial member Shammi Khan and technical member Sanjeev Kumar Sharma instructed notice to be served to Gensol on all modes and list the matter for hearing on June 3, according to a report by Bar & Bench.
Ireda had sought insolvency proceedings against Gensol Engineering over a default of Rs 510 crore, according to an exchange filing from the power financier on Wednesday. The plea has been filed under Section 7 of the Insolvency and Bankruptcy Code.
Gensol had borrowed Rs 977.75 crore from Ireda and Power Finance Corporation, out of which Rs 663.89 crore was for purchasing electric vehicles for BluSmart, an ride hailing platform founded by the company's cofounder Anmol Singh Jaggi. In April, both lenders filed complaints with the Economic Offences Wing against Gensol, alleging falsification of documents related to debt servicing status.
Lenders and leasing companies are looking to sell 1,500-2,000 electric vehicles which were listed on BluSmart, after the the EV ride-hailing platform suspended operations indefinitely last month after failing to raise funds amid allegations of financial irregularities against its founders, people familiar with the matter told ET.
The notice comes in the wake of cofounders Anmol Singh Jaggi and Puneet Singh Jaggi resigning from Gensol earlier this week, a month after the Securities and Exchange Board of India ( Sebi) barred them from holding key managerial positions following charges of wrongdoing against them. The markets regulator, in an April 15 interim order, charged them with diverting funds raised by the company for personal luxury expenses and defaults. The watchdog also ordered the company to put a stock split on hold.
The Sebi order came after a complaint was received in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter. Credit rating agencies Care Ratings and Icra downgraded certain credit facilities availed by Gensol due to delay in debt servicing. Icra further pointed out that debt servicing documents served by the company were apparently falsified.
In its order, Sebi noted that Gensol promoters were running a listed public company like a proprietary firm. GEL's funds were routed to related parties and used for unconnected expenses as if the company's funds were promoters' piggy banks.
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