IREDA lodges complaint against Gensol with Economic Offences Wing

State-run IREDA ( Indian Renewable Energy Development Agency Ltd ) has filed a complaint against Gensol Engineering, its promoters Anmol Singh Jaggi and Puneet Singh Jaggi, and associated companies for alleged falsification of documents and dilution of promoter holding without lender approval.

“Following recent developments concerning Gensol Engineering Ltd. and its promoters and associate companies, Indian Renewable Energy Development Agency Limited (IREDA) has initiated an internal review in accordance with RBI guidelines and the company’s due diligence protocols. Gensol's account is currently under stress but is not classified as an NPA,” the public sector renewable energy financier said in a statement.

“The Investigation and Risk Committees of IREDA are closely examining the matter. Appropriate actions regarding collaterals and recoveries will be taken based on the outcome of the review,” the statement said.

Regarding communications from credit rating agencies on the falsified documents, IREDA clarified that it did not issue the letters they referred to. “The promoters have diluted their shareholdings without lenders approval, constituting breach of contract. In light of this, IREDA has filed a complaint on above matters with the Economic Offences Wing (EoW) against Gensol on 24th April 2025,” said IREDA.

IREDA said it is committed to acting responsibly and will update all stakeholders once the company’s assessment concludes. “IREDA requests all concerned parties to refrain from speculation while the investigation is ongoing,” the statement said.

This comes days after Power Finance Corporation (PFC)—another state-run non-bank lender—lodged a complaint against Gensol with the Economic Offences Wing of the Delhi Police, alleging Gensol wilfully falsified documents. “PFC has filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents. PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations,” said PFC.

PFC had alleged that Gensol falsified letters to it, along with the Indian Renewable Energy Development Agency (IREDA), its two lenders, claiming that it was regular at debt servicing. However, the purported fraud was unearthed when the credit agencies began verifying the letters with the lenders.

Jaggi’s Gensol had sought a loan of ₹633 crore from state-run Power Finance Corporation to purchase 5,000 passenger EVs and 1,000 cargo EVs. These EVs were leased to BluSmart to expand its fleet of ride-hailing cabs. Indian Renewable Energy Development Agency (IREDA), the largest lender of the renewable energy sector in India, had sanctioned a loan of ₹267.67 crore to BluSmart Mobility for the purchase of 3,000 electric cars.

Credit rating agency ICRA, which brought the matter to light in February, had downgraded Jaggi-led public-listed Gensol Engineering following feedback received from the company’s lenders about the ongoing delays in debt servicing.