Navratna CSE IREDA Files Complaint with EoW Against Gensol Engineering After PFC Flags Irregularities

The Delhi Police's Economic Offences Wing (EoW) received a complaint on Friday from the Indian Renewable Energy Development Agency Limited (IREDA) against Gensol Engineering Ltd., a clean tech company, for allegedly submitting forged documents and diluting promoter shares without the consent of lenders.

IREDA stated in a regulatory filing on Friday that it has started an internal review in compliance with the Reserve Bank of India's (RBI) standards and its own due diligence procedures in response to recent developments involving Gensol, its promoters, and related companies.

According to the statement, Gensol's account is presently under stress but is not categorised as a non-performing asset (NPA).

"Regarding communications from credit rating agencies on the falsified documents, Ireda clarified that it did not issue the letters they referred to. The promoters have diluted their shareholdings without lenders approval, constituting breach of contract. In light of this, Ireda has filed a complaint on above matters with the Economic Offences Wing (EoW) against Gensol on 24 April 20," IREDA in regulatory filing said.

This comes days after Power Finance Corporation Limited (PFC), another government lender, said it had filed a complaint with the EoW against Gensol for allegedly using fake documents. PFC said it approached the EoW on April 22.

Rating agency Icra earlier pointed out in a statement that Gensol had falsified letters from PFC and Ireda to prove that it was consistent in its debt-servicing responsibilities to the lenders.

Another rating agency, Care, also raised the connection, citing the lenders' no objection certificates.

Ireda stated that the issue is being extensively examined by its risk and investigative committees and that "appropriate actions regarding collaterals and recoveries will be taken based on the outcome of the review."

"Ireda is committed to acting responsibly and will update all stakeholders once the company's assessment concludes. Ireda requests all concerned parties to refrain from speculation while the investigation is ongoing," the company said.

On April 15, market regulator Securities and Exchange Board of India (SEBI) issued an interim order prohibiting Anmol Singh Jaggi and Puneet Singh Jaggi, the promoters of Gensol, from trading in the stock market or holding key roles in Gensol or any other public company. SEBI also put Gensol's planned 1:10 stock split on hold and ordered a detailed investigation.