State-run Indian Renewable Energy Development Agency (IREDA) said on Wednesday that it has approached the Debt Recovery Tribunal at Delhi to recover around ₹728 crore in dues from Gensol Engineering and its subsidiary Gensol EV Lease.

“This is to inform you that the company has filed an Original Application under Section 19 of The Recovery of Debts and Bankruptcy Act, 1993 before Debt Recovery Tribunal Delhi on May 20, 2025 for a default amount of ₹510,00,52,672 and ₹218.95 crore against Gensol Engineering and Gensol EV Lease, respectively,” the power sector financier said in a BSE filing.

Prior to this, IREDA filed an application under Section 7 of Insolvency and Bankruptcy Code (IBC) on May 15, 2025 against Gensol EV Lease, which is a subsidiary of Gensol Engineering for an amount of default of ₹218.95 crore and ₹18.95 crore.

Besides, the lending agency on May 14 also filed an application under IBC against Gensol Engineering for an amount of default of around ₹510 crore.

Last month, another power sector lender, state-run Power Finance Corporation Ltd (PFC) also initiated legal proceedings against the controversy-hit Gensol Engineering.

PFC filed a complaint with the Economic Offences Wing (EOW) on the issue of Gensol Engineering promoters submitting fake documents with rating agencies.

PFC sanctioned ₹633 crore to Gensol Engineering in January 2023, which was earmarked for the procurement of 6,000 EVs (₹587 crore for procurement of 5,000 electric four wheelers for lease to BluSmart Mobility’s ride-hailing service and ₹46 crore for procurement of 1,000 electric three wheelers for cargo operations.)

Out of the ₹587 crore loan sanctioned towards electric four-wheeler vehicles, PFC had only disbursed ₹352 crore to Gensol for the leasing of 3,000 EVs to BluSmart Mobility. Till date, 2,741 vehicles have been delivered and hypothecated to PFC.

Published on May 21, 2025