The National Company Law Tribunal (NCLT) Ahmedabad Bench has admitted a petition filed by Indian Renewable Energy Development Agency Ltd (IREDA) to initiate insolvency proceedings against Gensol Engineering Ltd over a loan default of ₹510.10 crore.
The order, delivered on June 13, 2025, by the bench of Justice Shammi Khan (Judicial Member) and Mr. Sanjeev Kumar Sharma (Technical Member), marks the beginning of the corporate insolvency resolution process (CIRP) for the Ahmedabad-based renewable energy company.
IREDA, a government-owned financial institution under the Ministry of New and Renewable Energy, had sanctioned loans totalling ₹863.3 crore to Gensol Engineering between March 2022 and May 2024 for multiple renewable energy and EV projects. However, Gensol defaulted on repayments due on March 31, April 19, and May 12, 2025, triggering loan recall notices and eventually the insolvency application under Section 7 of the Insolvency and Bankruptcy Code.
In its defence, Gensol argued that the defaults were not substantiated with adequate evidence and contested the appointment of the proposed Interim Resolution Professional (IRP), citing conflict of interest. The Tribunal acknowledged the conflict and appointed an alternative IRP — Mr. Keshav Khaneja — to take charge of the process.
The NCLT declared a moratorium on legal proceedings and asset transfers in line with Section 14 of the IBC and directed Gensol’s management to cooperate fully with the IRP. SEBI had earlier barred Gensol’s promoters from holding directorial positions over alleged fund misutilisation, adding further weight to the need for resolution.
With this order, the CIRP against Gensol Engineering has officially commenced, aiming to resolve its debts and explore a turnaround plan under the supervision of the IRP.
