Power Finance Corporation (PFC), a state-run non-banking financial company, has filed a complaint with the Economic Offences Wing (EOW) against Gensol Engineering Ltd (GEL) for allegedly submitting falsified documents. This action follows an investigation initiated under PFC’s anti-fraud policy, following irregularities discovered during a routine credit rating review. “PFC is actively pursuing further actions in the instant case and exploring all possible options,” the company stated in its official release.
The controversy erupted when credit rating agencies attempted to verify documents submitted by Gensol, which provides solar consulting and engineering services. Instead of the requested term loan statements, Gensol is reported to have submitted “conduct letters” from Ireda and PFC along with “no objection certificates.”
Such documents are usually required for withdrawing credit ratings, not for the purposes requested. PFC clarified it did not issue any letters to the credit rating agencies involved, namely CARE and ICRA, news agency PTI reported.
In January 2023, PFC sanctioned a loan of Rs 633 crore to Gensol Engineering as part of its support for the government’s electric vehicle (EV) adoption strategy, under programmes like FAME and PM e-bus Seva. The funds were intended to procure 6,000 electric vehicles, including ₹587 crore for leasing 5,000 electric four-wheelers to BluSmart Mobility and Rs 46 crore for 1,000 electric three-wheelers for cargo operations. However, the three-wheeler loan was not utilised, and only Rs 352 crore has been disbursed for the four-wheelers.
“Repayments on the disbursed amount had commenced with Rs 45 crore repaid, leaving a principal outstanding of Rs 307 crore as on April 18, 2025.
“Until January 31, 2025, Gensol was servicing its dues regularly. In Q4’25, PFC invoked the Debt Service Reserve Account (DSRA) to clear February and March 2025 dues,” the company said, adding “PFC is actively pursuing further actions in the instant case and exploring all possible options”.
As of now, Gensol has delivered 2,741 electric vehicles, which have been hypothecated to PFC, according to third-party verifications. In April 2025, Gensol repaid Rs 45 crore, leaving an outstanding balance of Rs 307 crore.
The company was regularly servicing its dues until January 2025. In the fourth quarter of FY25, PFC invoked the Debt Service Reserve Account (DSRA) to settle dues for February and March 2025. PFC holds further financial safeguards including pledges on Gensol’s equity shares, non-convertible debentures, and guarantees from both Gensol Ventures Private Limited and its promoters.
The Securities and Exchange Board of India (Sebi) recently took action against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, in a case involving fund diversion and governance lapses. Sebi has barred them from participating in the securities markets until further notice.
Additionally, Sebi has instructed Gensol Engineering Ltd (GEL) to suspend the stock split that was previously announced by the company. The promoters have also been prohibited from holding the position of a director or key managerial personnel in any listed firm.
This action was initiated after Sebi received a complaint in June of last year regarding the manipulation of share price and funds diversion from GEL. Sebi has since been investigating the matter.
