Media365
The Debts Recovery Tribunal (DRT), Delhi on Wednesday restrained Gensol Engineering Ltd. and its arm Gensol EV Lease Ltd. from selling, transferring, alienating, damaging, removing and disposing off or otherwise creating third party interest with regard to immovable & movable secured assets.
It granted interim relief in a case filed by state-run Indian Renewable Energy Development Agency Ltd. (IREDA) seeking to recover ₹510 crore from Gensol Engineering and over ₹218 crore from Gensol EV Lease Ltd.
IREDA has succeeded in establishing a prima facie case in their favour. The balance of convenience also lies in their favour and if ex-parte interim order is not granted in their favour, it may suffer an irreparable loss which cannot be compensated in terms of the money, the DRT said.
It also restrained Gensol from entering into settlement with any unsecured creditor without the prior approval of this Tribunal.
DRT also allowed an authorised representative of IREDA to take possession of hypothecated vehicles.
Power Finance Corporation had also filed a plea before DRT seeking to recover over ₹264 crore from Gensol.
Hearing Power Finance Corporation plea, DRT restrained Gensol from selling, transferring, alienating, damaging, removing and disposing off or otherwise creating third party interest with regard to secured assets, immovable & movable, until further orders.
It also allowed an authorized representative of Power Finance to take possession of hypothecated vehicles.
It posted the matter for further pleadings on July 16.
Gensol has been in the spotlight after the Securities and Exchange Board of India’s (SEBI) interim order in April barred the company’s promoters from the securities market for alleged fund diversions and corporate governance lapses.
IREDA has also filed an insolvency petition against Gensol and its arm before the National Company Law Tribunal (NCLT). The NCLT is set to hear the case on June 3.
Published – May 28, 2025 09:40 pm IST
