Power Finance Corporation (PFC), a non -banking financial company managed by the State, filed a complaint with the Economic Wing (EOW) against Gensol Engineering LTD (GEL) for having allegedly subject to falsified documents. This action follows an investigation initiated within the framework of the anti-fraud policy of the PFC, after the irregularities discovered during an examination of the rating of routine credit. “The PFC actively pursues other actions in the instantaneous case and explores all possible options,” said the company in its official release.
The controversy broke out when credit rating agencies tried to check the documents submitted by Gensol, which provides solar advice and engineering services. Instead of the requested term loan statements, Gensol would have submitted “letters of conduct” from Ireda and PFC as well as “without objection certificates”.
These documents are generally necessary to withdraw the credit ratings, and not for the purposes requested. PFC said that he had not published any letter to the credit rating agencies involved, namely Care and ICRA, reported the PTI news agency.
In January 2023, PFC sanctioned a loan of RS 633 crossed to Gensol Engineering as part of its support for the government’s adoption strategy (EV) of the Government (EV), as part of programs such as renown and the PM E-BUS SEVA. The funds were intended to obtain 6,000 electric vehicles, of which 587 crosses ₹ to rent 5,000 eighty electric for the mobility of blusmart and RS 46 crores for 1,000 three electric wheels for cargo operations. However, the three -wheeled loan was not used and only RS 352 crore was disbursed for the four wheels.
“The reimbursements on the paid amount had started with RS 45 crore reimbursed, leaving a principal in circulation of RS 307 crosses on April 18, 2025.
“Until January 31, 2025, Gensol regularly serves his contributions. In Q4’25, PFC invoked the debt service reserve account (DSRA) to erase the contributions of February and March 2025,” said the company, adding that “PFC actively pursues actions in the Instant case and explores all possible options”.
Currently, Gensol has delivered 2,741 electric vehicles, which have been mortgaged at the PFC, according to third -party verifications. In April 2025, Gensol reimbursed RS 45 crossed, leaving a balance out of RS 307 crores.
The company regularly serves its contributions until January 2025. In the fourth quarter of the 2017 financial year, PFC invoked the debt service reserve account (DSRA) to settle contributions for February and March 2025. PFC holds other financial guarantees, in particular promises of wages on peopleol actions, non -convertible requirements and non -convertible promoters and guarantees of its non -convertible promoters.
The Securities and Exchange Board of India (SEBI) has recently taken measures against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, in a case involving the diversion of funds and the governance towers. SEBI prohibited them from participating in the securities markets until further notice.
In addition, SEBI asked Gensol Engineering LTD (GEL) to suspend the split of shares which had been announced previously by the company. Promoters were also prohibited from occupying the position of director or key management staff in a listed company.
This action was launched after Sebi received a complaint in June from last year concerning the manipulation of the equity course and the embezzlement of frost funds. Sebi has since investigated the issue.
