Gensol Engineering's Financial Debacle: Bankruptcy, Fraud, and Forensic Audit

The Indian Renewable Energy Development Agency (Ireda) has initiated bankruptcy proceedings against Gensol Engineering. According to a regulatory filing, Ireda lodged the application with the National Company Law Tribunal on May 14, 2025, under Section 7 of the Insolvency and Bankruptcy Code, 2016, for a default amount of Rs 510 crore.

Previously, the Securities and Exchange Board of India (Sebi) barred Gensol Engineering and its promoters from the securities markets due to fund diversion and governance issues. The Jaggi brothers, Anmol and Puneet, have resigned from their leadership roles following this directive. Gensol's appeal against Sebi's interim order was disposed of by the Securities Appellate Tribunal, which allowed the company to respond.

Sebi's investigation revealed serious misuse of company funds by the promoters for personal purposes, treating Gensol as a proprietary firm. Accusations include fraudulent fund routing to buy luxury items and attempts to mislead regulatory bodies. The tribunal has mandated a forensic audit to inspect Gensol's financial practices thoroughly.

(With inputs from agencies.)