IREDA Pursues Legal Action against Gensol for Rs 729 Crore Recovery

The Indian Renewable Energy Development Agency (IREDA) has initiated legal proceedings to reclaim approximately Rs 729 crore from Gensol Engineering and its subsidiary, Gensol EV Lease Pvt Ltd, via the Debt Recovery Tribunal Delhi. The agency filed for bankruptcy against the firms earlier.

Followed by Sebi's interim order, the Jaggi brothers resigned from Gensol amidst allegations of funds diversion and corporate governance lapses. Sebi's investigation spotlighted the misuse of Gensol's funds for personal gain and misleading regulatory bodies.

Gensol allegedly used loans, meant for purchasing electric vehicles, for unrelated purposes, ultimately hurting investors. Internal controls at the company are reported to be deficient, prompting a directive for a forensic audit of its accounts.

(With inputs from agencies.)