On April 25, India’s state-run renewable energy lender, IREDA (Indian Renewable Energy Development Agency), filed a complaint with the Economic Offences Wing (EOW) against Gensol Engineering. The complaint is about the company allegedly submitting fake documents.
In a statement, IREDA said it is investigating the matter and its risk and investigation teams are closely looking into it. They will take necessary action regarding the company’s assets and loans based on the investigation results.
Read More: Gensol’s Share Price Falls Again After SEBI Action; BluSmart Halts Operations
This follows a similar complaint earlier this week from Power Finance Corporation (PFC), another lender to Gensol. Credit rating agencies also downgraded Gensol’s rating in March, accusing the company of submitting fake financial documents.
India’s market regulator has barred Gensol’s founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from holding key positions in the company. This was after they allegedly failed to pay back loans taken for their electric vehicle startup, BluSmart Mobility. However, Gensol has denied that they defaulted on their loans.
Recently, the company’s promoters sold a 2.4% stake in Gensol after the downgrades, a move that IREDA claims was done without the approval of the lenders, which they say violates the agreement.
