PFC takes Gensol Engineering's forgery case to Economic Offences Wing

In an official statement, PFC on Tuesday evening said, under its Anti-Fraud Policy, it is investigating GEL for falsified documents

Power Finance Corporation (PFC), a public sector non-banking financial company (NBFC), lodged a complaint with the Economic Offences Wing (EOW) against Gensol Engineering Ltd's (GEL’s) falsified documents in February, it said in an official statement. 

 

  Business Standard had on Monday reported that the Indian Renewable Energy Development Agency (Ireda) and PFC were planning to approach the EOW of the Delhi Police to report alleged forgery by the firm. The duo had extended loans to Ahmedabad-based Gensol.

 

In the official statement, PFC on Tuesday evening said that under its anti-fraud policy, it is investigating GEL for falsified documents. 

 

“PFC is actively pursuing further actions in the instant case and exploring all possible options,” it said. It also clarified that it did not issue any letters to credit rating agencies CARE and ICRA.

 

The irregularities reportedly came to light after the two credit rating agencies attempted to verify the documents with the lenders.

 

In February, as part of a credit rating review, the agencies asked Gensol — engaged in providing solar consulting services, and engineering, procurement and construction (EPC) services — to provide term loan statements from all its lenders.

 

In response, GEL is said to have submitted “conduct letters” instead of the requested statements from Ireda and PFC, along with “no objection certificates”. These documents are typically required when withdrawing credit ratings.

 

PFC sanctioned ₹633 crore to Gensol Engineering in January 2023 in line with the government's push for electric vehicle (EV) adoption through schemes like FAME and PM E-bus Seva, the official statement said. 

 

This funding was for procuring 6,000 EVs, including ₹587 crore for 5,000 e4Ws on lease to BluSmart Mobility and ₹46 crore to procure 1,000 e3Ws for cargo operations. However, the three-wheeler loan was not availed.

 

Of the ₹587-crore loan sanctioned towards e4Ws, PFC had only disbursed ₹352 crore to Gensol for leasing 3,000 EVs to BluSmart Mobility. To date, 2,741 vehicles have been delivered and hypothecated to PFC, as confirmed by third-party agencies appointed by PFC.

 

The state-owned lender further said it has a pledge of Gensol's equity shares and non-convertible debentures (NCDs), a corporate guarantee from Gensol Ventures Private Limited, and personal guarantees from promoters. 

 

Liquid assets in the form of TRA balances, Debt Service Reserve Account (DSRA) balances, and fixed deposits by BluSmart with a lien marked to PFC are also in place.

 

As on April 18, ₹45 crore was repaid, leaving a principal outstanding of ₹307 crore. Until January 31, Gensol was servicing its dues regularly. In the fourth quarter of FY25, PFC invoked the DSRA to clear February and March 2025 dues, the company's statement said.  

The chain of events

 

> PFC sanctioned ₹633 crore to Gensol in January 2023 to procure 6,000 EVs and lease them out to BluSmart Mobility 

> It allocated ₹587 crore from this for 5,000 e4Ws and ₹46 crore to procure 1,000 e3Ws for cargo operations

> In Q4FY25, PFC invoked DSRA to clear Gensol’s dues from Feb and March 2025

> As on April 18, ₹45 crore was repaid, leaving a principal outstanding of ₹307 crore