Public sector lenders Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA) are reportedly considering auctioning electric vehicles (EVs) financed for Gensol Engineering, following fears of loan default and operational turmoil. According to a report by The Economic Times, these EVs—over 5,000 in number—were funded through loans totaling Rs 663 crore and later leased by Gensol to ride-hailing company BluSmart.
The concern arose after BluSmart abruptly suspended its operations on April 17, resulting in a halt in lease payments to Gensol. With no incoming lease revenue, lenders are worried that Gensol’s account may soon be classified as a non-performing asset (NPA). Sources suggest that both PFC and IREDA are proactively identifying potential buyers for the EVs, which are hypothecated to them, as a way to safeguard asset recovery.
The situation is further complicated by the promoters of both Gensol and BluSmart—brothers Anmol Singh Jaggi and Puneet Singh Jaggi—who are under regulatory scrutiny by SEBI. The regulator has barred them from holding positions in any listed company and accused them of fund diversion and insider trading in Gensol shares. They have 21 days to respond to these charges.
Although the lenders have not yet tagged the Gensol account as an NPA, they are relying on a debt-service reserve account maintained by Gensol. However, the lack of fresh payments from BluSmart may soon deplete this buffer.
Credit rating agencies had already downgraded Gensol’s debt to ‘D’ in March 2025 due to delays in repayment. Adding to the financial distress, exchange filings show that the Jaggi brothers hold a 62.65% stake in Gensol, with 81.6% of it—around 1.95 crore shares—pledged.
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