IREDA Files Insolvency Plea Against Gensol Over ₹510 Cr Default Amid SEBI Probe

The Indian Renewable Energy Development Agency (IREDA) has filed an insolvency plea under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gensol Engineering Ltd over a loan default exceeding ₹510 crore.

Following SEBI’s April 15 order, Gensol was accused of diverting funds, indulging in luxury spending, and submitting forged documents, leading to a ban on its promoters from accessing the securities market and holding managerial positions.

While the Securities Appellate Tribunal refused to stay SEBI's order, the Delhi High Court ordered the seizure of electric vehicles hypothecated to various lenders.

Multiple lessors also secured interim relief. Gensol's response to SEBI is pending and a final decision is expected in four weeks.