State-run Indian Renewable Energy Development Agency (IREDA) has classified the loan accounts of Gensol Engineering Ltd and its subsidiary, Gensol EV Lease Ltd, as fraud and reported the matter to the Reserve Bank of India (RBI), escalating regulatory action against the embattled renewable energy company.
In a stock exchange filing on Friday, IREDA said the accounts had been declared as fraud in accordance with the RBI’s Master Direction on Fraud Risk Management for non-banking financial companies. The lender said the action follows its earlier disclosures relating to the borrowers.
IREDA said Gensol Engineering’s account, with outstanding dues of ₹453.77 crore, has been classified as fraud on grounds of alleged “misappropriation and criminal breach of trust” and “forgery with the intention to commit fraud by making false documents and/or electronic records”. Its subsidiary, Gensol EV Lease Ltd, with outstanding dues of ₹218.97 crore, has been classified as fraud for alleged misappropriation and criminal breach of trust. The lender has already made provisions equivalent to 85 per cent of the outstanding amount in both accounts as of March 31, 2026.
The declaration marks the latest development in the widening regulatory action against Gensol and its promoters. In April 2025, the Securities and Exchange Board of India (SEBI) issued an interim order alleging diversion of company funds, falsification of documents submitted to lenders and serious corporate governance lapses. The market regulator barred promoters Anmol Singh Jaggi and Puneet Singh Jaggi from holding key managerial positions in the company and from accessing the securities market.
SEBI’s investigation was triggered after credit rating agencies CARE Ratings and ICRA downgraded Gensol’s debt to default grade in March 2025, citing delays in debt servicing and concerns that documents furnished by the company regarding its repayment record had apparently been falsified. The regulator subsequently found prima facie evidence that conduct letters purportedly issued by IREDA and Power Finance Corporation (PFC) had been forged.
Separately, IREDA has initiated recovery proceedings against the Gensol entities before the Debt Recovery Tribunal and has also filed insolvency proceedings against Gensol Engineering to recover its dues.
Published on July 11, 2026
