India’s IREDA files bankruptcy case against Gensol Engineering amid fraud allegations

State-owned Indian Renewable Energy Development Agency said on Wednesday it has filed a bankruptcy application against Gensol Engineering marking the first instance of a creditor taking the embattled firm to the National Company Law Tribunal (NCLT).

Gensol, a solar energy firm that also procured electric vehicles on behalf of ride-hailing service BluSmart, owes IREDA 5.10 billion rupees ($59.73 million).

In April, IREDA filed a complaint with the Economic Offences Wing against Gensol, alleging falsification of documents, and initiated an internal review regarding these allegations.

Another lender, Power Finance Corp, has also filed similar allegations.

Gensol’s Managing Director Anmol Singh Jaggi and his brother Puneet Singh Jaggi resigned earlier this week, a month after India’s market regulator barred them from holding key positions in the company.

Anmol Singh Jaggi is also a co-founder of BluSmart.

The Securities and Exchange Board of India (SEBI) alleged that the brothers were involved in diverting funds raised by the company towards personal luxury purchases and debt defaults.

SEBI also claimed the company defaulted on loans, including those taken to finance electric vehicle purchased for BluSmart Mobility.

In late April, India’s financial crime-fighting agency raided Gensol’s premises, seizing documents and electronic devices. SEBI ordered a forensic audit of the company.