Pfc Lodges Complaint Against Gensol Engineering With Economic Offences Wing For Forged Documents

Power Finance Corporation (PFC), a state-run non-banking financial company, has revenge a title pinch nan Economic Offences Wing (EOW) against Gensol Engineering Ltd (GEL) for allegedly submitting falsified documents. This action follows an investigation initiated nether PFC's anti-fraud policy, pursuing irregularities discovered during a regular in installments standing review. "PFC is actively pursuing further actions successful nan instant lawsuit and exploring each imaginable options,” nan institution stated successful its charismatic release.

The contention erupted erstwhile in installments standing agencies attempted to verify documents submitted by Gensol, which provides star consulting and engineering services. Instead of nan requested word indebtedness statements, Gensol is reported to person submitted "conduct letters" from Ireda and PFC on pinch "no objection certificates." 

Such documents are usually required for withdrawing in installments ratings, not for nan purposes requested. PFC clarified it did not rumor immoderate letters to nan in installments standing agencies involved, namely CARE and ICRA, news agency PTI reported.

In January 2023, PFC sanctioned a indebtedness of Rs 633 crore to Gensol Engineering arsenic portion of its support for nan government's electrical conveyance (EV) take strategy, nether programmes for illustration FAME and PM e-bus Seva. The costs were intended to procure 6,000 electrical vehicles, including ₹587 crore for leasing 5,000 electrical four-wheelers to BluSmart Mobility and Rs 46 crore for 1,000 electrical three-wheelers for cargo operations. However, nan three-wheeler indebtedness was not utilised, and only Rs 352 crore has been disbursed for nan four-wheelers.

"Repayments connected nan disbursed magnitude had commenced pinch Rs 45 crore repaid, leaving a main outstanding of Rs 307 crore arsenic connected April 18, 2025.

"Until January 31, 2025, Gensol was servicing its dues regularly. In Q4'25, PFC invoked nan Debt Service Reserve Account (DSRA) to clear February and March 2025 dues," nan institution said, adding "PFC is actively pursuing further actions successful nan instant lawsuit and exploring each imaginable options".

As of now, Gensol has delivered 2,741 electrical vehicles, which person been hypothecated to PFC, according to third-party verifications. In April 2025, Gensol repaid Rs 45 crore, leaving an outstanding equilibrium of Rs 307 crore. 

The institution was regularly servicing its dues until January 2025. In nan 4th fourth of FY25, PFC invoked nan Debt Service Reserve Account (DSRA) to settee dues for February and March 2025. PFC holds further financial safeguards including pledges connected Gensol's equity shares, non-convertible debentures, and guarantees from some Gensol Ventures Private Limited and its promoters.

The Securities and Exchange Board of India (Sebi) precocious took action against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, successful a lawsuit involving money diversion and governance lapses. Sebi has barred them from participating successful nan securities markets until further notice.

Additionally, Sebi has instructed Gensol Engineering Ltd (GEL) to suspend nan banal divided that was antecedently announced by nan company. The promoters person besides been prohibited from holding nan position of a head aliases cardinal managerial unit successful immoderate listed firm.

This action was initiated aft Sebi received a title successful June of past twelvemonth regarding nan manipulation of stock value and costs diversion from GEL. Sebi has since been investigating nan matter.