NCLT Admits Gensol Engineering to Insolvency Process Amid SEBI Probe and ₹992 Crore Debt
- PRABHAT KUMAR BILTORIA
- 15 June 2025

The National Company Law Tribunal (NCLT) has admitted Gensol Engineering into insolvency proceedings after serious regulatory findings by SEBI and a ₹992 crore debt crisis. Learn how this impacts the EV sector and stakeholders like BluSmart, IREDA, and PFC.
NCLT Approves Insolvency Proceedings Against Gensol Engineering
On June 13, 2025, the National Company Law Tribunal (NCLT) in Ahmedabad officially admitted an insolvency application filed by the Indian Renewable Energy Development Agency (IREDA) against Gensol Engineering Limited, the parent company of BluSmart, a notable name in India’s electric vehicle (EV) ecosystem.
Judicial Panel Rejects IREDA’s RP Recommendation
A coram led by Judicial Member Shammi Khan and Technical Member Sanjeev Kumar ruled in favor of initiating the corporate insolvency resolution process but declined IREDA’s suggested resolution professional (RP), opting instead for one from the Insolvency and Bankruptcy Board of India (IBBI) list.
Gensol’s Troubles Began With SEBI’s Interim Order
The case’s roots trace back to April 15, when SEBI issued an interim order alleging Gensol had diverted public and borrowed funds toward unrelated luxury assets, such as a high-end apartment. The order also noted the use of forged documents—including “no objection certificates”—submitted to credit rating agencies.
Exaggerated EV Claims and Regulatory Action
SEBI accused Gensol of misleading investors with inflated EV procurement figures, even though actual production was minimal. As a result, the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, were barred from participating in the securities market and from holding executive positions.
SEBI’s Actions Upheld by the Securities Appellate Tribunal
On May 7, the Securities Appellate Tribunal (SAT) declined to stay SEBI’s order. Gensol was instructed to respond to the interim findings, and SEBI was directed to pass a final order within four weeks of the hearing.
NCLT Freezes Accounts and Orders Asset Disclosure
By May 28, the NCLT had frozen Gensol’s bank and demat accounts, restricted trading of its securities, and ordered detailed asset disclosures. These measures extended to 16 related entities and their respective promoters.
Ministry of Corporate Affairs Joins the Legal Proceedings
The Ministry of Corporate Affairs (MCA) submitted a separate petition against Gensol and affiliated companies under Sections 241, 242, and 246, along with Section 339 of the Companies Act, 2013, citing severe corporate governance violations and misappropriation of funds.
Debts Recovery Tribunal Freezes Assets Worth ₹992 Crore
Meanwhile, the Debts Recovery Tribunal (DRT) in Delhi granted interim relief to both IREDA and Power Finance Corporation (PFC) in three separate recovery suits totaling over ₹992 crore. The DRT ordered a freeze on secured assets, seizure of EVs, and prohibition on transferring intellectual property owned by BluSmart.
Delhi High Court Also Engaged in the Legal Tangle
Multiple lessors have approached the Delhi High Court seeking protection for the electric vehicles leased to BluSmart amid ongoing legal uncertainty.
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