NCLAT Upholds Asset Freeze on Gensol Amid Fraud Allegations

The National Company Law Appellate Tribunal (NCLAT) has refused to halt the implementation of an earlier order by the National Company Law Tribunal (NCLT) to freeze the assets of Gensol and its related entities. This decision comes on the back of serious allegations against Gensol, including claims of fraudulent conduct and financial mismanagement.

The tribunal directed Gensol Group companies, BluSmart Premium Feet and Matrix Gas and Renewable, to present their case to the NCLT's Ahmedabad bench. The next hearing concerning the matter has been set for June 12. The companies seek relief from the asset freeze, which they argue has been enforced without due process.

The Ministry of Corporate Affairs (MCA) and its representatives argue that the decision followed proper protocol, given the severity of the accusations, including fund diversion and violations of governance norms. The government and financial oversight bodies support the claim of systemic fraud on the part of Gensol, which has significant implications for public interest.

(With inputs from agencies.)