IREDA declares Gensol Engineering, Gensol EV Lease accounts as fraud; reports to RBI

State-owned Indian Renewable Energy Development Agency Ltd (IREDA) on Friday (July 10) said it has declared the loan accounts of Gensol Engineering Ltd and its subsidiary Gensol EV Lease Ltd as fraudulent and reported the matter to the Reserve Bank of India (RBI) in accordance with regulatory requirements.

The company said the action has been taken under the Reserve Bank of India Master Direction – Fraud Risk Management in Non-Banking Financial Companies (NBFCs) Directions, 2024.



IREDA said Gensol Engineering Ltd has been classified as fraud on account of misappropriation and criminal breach of trust, and forgery with the intention to commit fraud by making false documents and/or electronic records.

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The outstanding amount in Gensol Engineering's account stood at ₹453.77 crore, against which IREDA had made 85% provisioning as of March 31, 2026.

The lender also declared the account of Gensol EV Lease Ltd, a subsidiary of Gensol Engineering, as fraud on account of misappropriation and criminal breach of trust. The outstanding amount in Gensol EV Lease's account stood at ₹218.97 crore, with 85% provisioning as of March 31, 2026.

Brothers Anmol Singh Jaggi and Puneet Singh Jaggi, promoters of Gensol and BluSmart, are facing regulatory action by the Securities and Exchange Board of India (SEBI) over allegations of diversion of the loan money meant for EV purchase.

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SEBI has imposed a capital market ban on the duo, barring them from holding positions in listed companies. Gensol Engineering is engaged in providing solar consulting services, engineering, procurement and construction (EPC) services, and leasing of electric vehicles, among others.

SEBI received a complaint in June 2024 related to the manipulation of share price and diversion of funds from Gensol and thereafter started examining the matter. Additionally, SEBI directed Gensol Engineering to put its planned stock split into the ratio of 1:10 on hold.

Shares of Indian Renewable Energy Development Agency Ltd ended at ₹126.40, up by ₹4.65, or 3.82%, on the BSE.

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