NCLT issues notice to Gensol Engineering on Ireda's insolvency plea

The NCLT on Friday issued a notice to Gensol Engineering, directing it to file a reply over the insolvency plea filed by the Indian Renewable Energy Development Agency, and listed the matter on June 3 for hearing.

Indian Renewable Energy Development Agency's (Ireda) plea came for hearing before a two-member Ahmedabad-based bench of the insolvency tribunal NCLT.

The bench, comprising Judicial Member Shammi Khan and Technical Member Sanjeev Kumar Sharma, has directed to list the matter on June 3 for the hearing.

During the proceedings, Ireda requested the bench to appoint an Interim Resolution Professional (IRP) to take charge of the company as the top leadership has exited, following the order passed by the market regulator Sebi. However, the bench refused it.

The National Company Law Tribunal (NCLT) was hearing a petition filed by Ireda, a financial creditor of Gensol Engineering, claiming a default of Rs 510 crore.

Gensol's troubles started after an interim order by the Securities and Exchange Board of India (SEBI) passed on April 15, when it barred Gensol Engineering and promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities markets till further orders in a fund diversion and governance lapses case.

On May 12, Jaggi brothers resigned from the company following market regulator Sebi's interim order, according to an exchange filing. Anmol Singh Jaggi held the post of Managing Director while Puneet Singh Jaggi was a Whole-time Director.

Gensol Engineering on Wednesday said the Securities Appellate Tribunal (SAT) disposed of its appeal but allowed the company to file its response on Sebi's interim order to bar the firm and its promoters from the securities market.

In a regulatory filing, the company said the appeal filed by it before the SAT has been disposed of, granting it an opportunity to file its response to Sebi's interim order within two weeks.

It further informed that the markets regulator has been given directions to hear the company within two weeks thereafter and pass an appropriate order within four weeks.

The tribunal has given no observations on Sebi's interim order, it stated.

In its order on April 15, 2025, the Sebi also debarred Jaggi brothers from holding the position of a director or key managerial personnel in Gensol until further orders.

The order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.