The National Company Law Tribunal (NCLT) has ordered the commencement of insolvency proceedings against Gensol Engineering Ltd and its group company Gensol EV Lease, following petitions filed by the Indian Renewable Energy Development Agency (IREDA), PTI reports.

In its order issued on Friday, the Ahmedabad bench of the NCLT admitted the petitions and appointed interim resolution professionals (IRPs) for both financially distressed companies. The tribunal also suspended the existing boards of directors of the two firms.

In the case of Gensol Engineering, the tribunal stated that IREDA had successfully established a financial debt of ₹510 crore through evidence such as ledger extracts, trust and retention account (TRA) statements, demand notices, and National e-Governance Services Ltd (NeSL) records. The NCLT formally admitted Gensol Engineering into the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016.

Gensol Engineering is involved in setting up and financing renewable energy and energy efficiency projects.

For Gensol EV Lease, which operates in the electric vehicle leasing and infrastructure space, the NCLT noted a default of ₹218.95 crore. The company had cross-default obligations linked to Gensol Engineering's loan defaults, triggering repayment liabilities under the agreement with IREDA.

Both companies have now been placed under a moratorium as per IBC provisions. The tribunal has appointed Keshav Khaneja as the IRP to take over the management of the companies’ operations and assets. The IRP has been directed to assume control without delay and can seek police assistance if necessary.

“The IRP is expected to take full charge of the corporate debtor's assets and documents. Police authorities are directed to provide any assistance needed,” the order stated.

All personnel associated with Gensol Engineering and Gensol EV Lease, including promoters and management, have been instructed to fully cooperate with the IRP. The tribunal also asked the IRP to file periodical progress reports on the CIRP.

Earlier, on May 28, the NCLT had frozen bank accounts, restrained securities trading, and ordered asset disclosures for Gensol Engineering and 16 associated entities. This was challenged by two Gensol group companies—BluSmart Premium Fleet and Matrix Gas and Renewable—before the National Company Law Appellate Tribunal (NCLAT), which directed them to return to the NCLT on June 4.

Gensol’s financial troubles have deepened since the Securities and Exchange Board of India (SEBI) issued an interim order on April 15, 2025, barring the company and its promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from the securities market over alleged fund diversion and governance lapses. Following this, the Jaggi brothers stepped down from their executive roles on May 12. SEBI also prohibited them from holding any directorial or key managerial roles in Gensol until further notice.

The SEBI probe was triggered by a June 2024 complaint alleging share price manipulation and fund diversion from Gensol Engineering Ltd