IREDA clarified that he did not issue letters cited in counterfeit documents informed by the qualification agencies and pointed out that the promoters of Gensol diluted the participation of the actions without approach to the lender, constitute a contract violation. | Photo credit: kesavan an 1612@chennai
The Renewable Energy Development Agency of India (IREDA), administered by the State, said Friday that it initiated an internal review by RBI guide and the protocols for due diligence of Gensol Engineering about accusations of poor fund management.
However, the lender of the electricity sector clarified that the Gensol account is currently under stress, but is not classified as a NPA.
Last week, another state lender of the electricity sector, PFC, filed a complaint with the EOW with respect to the Gensol engineering promoters who present false documents to the qualification agencies.
After recent developments on Gensol’s engineering and their associated promoters and companies, research and risk committee of IREDA are closely examining the matter.
“Appropriate actions will be taken regarding guarantees and recoveries depending on the result of the review,” he added.
Regarding the communications of the credit rating agencies in the counterfeit documents, IREDA clarified that he did not issue the letters to which they referred.
“The promoters have diluted their shareholders without the approval of the lenders, constituting the breach of the contract. In the light of this, IREDA has filed a complaint about previous matters before the wing of economic crimes (EOW) against Gensol on April 24, 2025,” IREDA said in a statement.
IREDA undertakes to act responsible and will update all those interested once the company’s evaluation concludes. He added that IREDA requests that all interested parties refrain from speculating while the investigation is ongoing.
Gensol received ₹ 977.75 million rupees from IREDA and PFC as term loans, or that was ₹ 663.89 million rupees to buy 6,400 EV. However, it acquired only 4,704 EV.
Posted on April 25, 2025