NCLT to hear Ireda's plea seeking insolvency against Gensol Engineering

NCLT to hear Ireda's plea against Gensol Engineering over a ₹510 crore default, but denies appointment of an IRP, citing the need to hear the company's side first

The National Company Law Tribunal (NCLT) Ahmedabad on Friday agreed to hear an insolvency plea moved by the Indian Renewable Energy Development Agency Limited (Ireda) against Gensol Engineering.

 

Ireda approached the insolvency tribunal following a default on payment of ₹510 crore by Gensol Engineering, which ran and managed the electric-car ride-hailing platform BluSmart.

 

A bench of judicial member Shammi Khan and technical member Sanjeev Kumar Sharma refused Ireda’s request to appoint an interim resolution professional (IRP) at this stage, stating that Gensol Engineering must be heard first.

 

Ireda’s lawyer also urged the tribunal to appoint someone to manage the company, claiming Gensol was 'headless' after its promoters allegedly fled amid regulatory scrutiny.

 

“Sir, by virtue of Sebi’s (Securities and Exchange Board of India) order, the company is now headless. Directors have walked out and the company has projects worth crores of rupees. Somebody needs to manage the show,” the lawyer told the NCLT.

 

The financial creditor also alleged a complete breakdown of internal controls and corporate governance norms at Gensol, accusing the promoters of running the listed firm as if it were their proprietary concern. The hearing is now scheduled for 3 June.

 

BluSmart, on 16 April, had paused cab bookings in certain parts of Delhi-NCR, Bengaluru, and Mumbai — the three cities where it operates.

 

The rides were halted a day after the Securities and Exchange Board of India (Sebi) barred the promoters and directors of Gensol Engineering — Anmol Singh Jaggi and Puneet Singh Jaggi — from accessing the securities markets, allegedly for fraudulent practices and fund misuse. The market regulator also restricted the duo from holding any key positions at any listed company.