ED conducts search operations at Gensol Engineering; seizes documents

India's financial crime fighting agency has raided the premises of embattled Gensol Engineering and seized documents and electronic devices, the company said on Monday.

 

The company, which has come under scrutiny for allegedly defaulting on debt, said that the financial impact of the search and seizure operation at its Gurgaon and Ahmedabad offices by the Directorate of Enforcement could not be ascertained. 

On April 15, India's markets regulator took a slew of actions against Gensol over concerns that the company might have diverted funds raised for business towards personal luxury purchases.   

The regulator also alleged that the company had defaulted on loans, including debt taken to finance electric vehicle purchases for their ride-hailing start-up BluSmart Mobility. 

Gensol denied defaulting on loans. 

Since then, Power Finance Corp (PFC) and Indian Renewable Energy Development Agency (IREDA) have filed complaints, alleging document fraud, with PFC also claiming non-repayment of some debt. 

Gensol said on Monday that it was in the process of taking appropriate legal measures in regard to the search operation.