The National Company Law Tribunal (NCLT) has issued a notice to Gensol Engineering in response to an insolvency petition filed by the Indian Renewable Energy Development Agency (IREDA) over a ₹510 crore loan default. The tribunal has scheduled the next hearing for June 3, 2025.

IREDA filed the insolvency plea under Section 7 of the Insolvency and Bankruptcy Code, citing a significant loan default by Gensol. During the initial hearing, IREDA requested the appointment of an Interim Resolution Professional (IRP) to manage Gensol, arguing that the company was effectively “headless” following the resignation of its top leadership. However, the tribunal declined this request, stating that Gensol must be given an opportunity to respond before such an appointment is considered.

This development follows regulatory actions by the Securities and Exchange Board of India (SEBI), which, on April 15, 2025, barred Gensol Engineering and its promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from the securities markets due to allegations of fund diversion and governance lapses. Subsequently, both promoters resigned from their positions on May 12, 2025.

Despite these challenges, Gensol Engineering’s shares have hit the 5% upper circuit limit for the fourth consecutive trading day, indicating continued investor interest amid the ongoing turmoil.

Sources