The Ahmedabad Bench of the National Company Law Tribunal (NCLT) has admitted an insolvency application filed by the Indian Renewable Energy Development Agency Ltd (IREDA) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gensol Engineering Ltd and its EV leasing arm, Gensol EV Leasing Ltd.

The Tribunal has initiated the corporate insolvency resolution process (CIRP) for both entities and appointed Keshav Khaneja as the Interim Resolution Professional (IRP).

IREDA alleged a default of ₹510 crore by Gensol in connection with loans for renewable energy and EV-linked projects. The lender pointed to a complete breakdown in corporate governance following regulatory action by SEBI, which led to the resignation of key managerial personnel, leaving the company “headless.” Serious allegations of fund diversion and mismanagement by the promoters were also raised.

Highlighting the urgency of the situation, IREDA cited the scale of default, pending government projects, and ongoing scrutiny by SEBI and the Ministry of Corporate Affairs. The Bench, comprising Judicial Member Shammi Khan and Technical Member Sanjeev Kumar Sharma, admitted the petition and emphasized that although IREDA had suggested a Resolution Professional, the IRP was selected from the IBBI’s panel.

The Tribunal ordered that both Gensol entities be brought under CIRP under the supervision of the same IRP, who is to issue public notices, invite claims, and form the Committee of Creditors (CoC). The resolution process is to be completed within 180 to 330 days, failing which liquidation proceedings may follow.

Earlier, on May 28, the NCLT had permitted the Union Government to freeze the bank accounts and lockers of Gensol, its subsidiaries, and related individuals. Appeals against this action were directed to be heard by the NCLT.