The National Company Law Tribunal (NCLT), Ahmedabad, on Friday issued a notice to Gensol Engineering, directing it to file a reply over the insolvency plea filed by public sector Indian Renewable Energy Development Agency (IREDA).
IREDA plea came before a two-member bench of the NCLT which posted it for hearing on June 3.
The bench refused the PSU’s request to appoint an Interim Resolution Professional (IRP) to take charge of the company as the top leadership had exited in the wake of the ban order passed by the market regulator Sebi.
IREDA filed the insolvency petition under Section 7 of Insolvency and Bankruptcy Code 2016 before NCLT against the company in respect of the defaults and potential defaults under the five loan facilities availed by the company. IREDA had claimed a default of Rs 510 crore.
“The company’s operations came to a complete standstill due to the SEBI interim order dated April 15, 2025 and due to the prejudice emanating from the SEBI, the Company is facing a barrage of litigation and claims from various parties,” the company said in an exchange filing.
Market regulator SEBI passed an order on April 15, barring Gensol Engineering and promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities markets till further orders in a fund diversion and governance lapses case. On May 12, Jaggi brothers resigned from the company following the Sebi’s interim order, according to an exchange filing. Anmol Singh Jaggi held the post of Managing Director while Puneet Singh Jaggi was a Whole-time Director.
Sebi also debarred Jaggi brothers from holding the position of a director or key managerial personnel in Gensol until further orders.
The order came after the regulator received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.
The company earlier this week said the Securities Appellate Tribunal (SAT) disposed of its appeal but allowed the company to file its response on Sebi’s interim order to bar the firm and its promoters from the securities market.
In a regulatory filing, the company said the appeal filed by it before the SAT has been disposed of, granting it an opportunity to file its response to Sebi’s interim order within two weeks. It further informed that the markets regulator has been given directions to hear the company within two weeks thereafter and pass an appropriate order within four weeks.
The company had raised a Rs 900 crore in equity capital through warrants convertible into equity shares on a preferential basis in February 2024.
