Filing of Application under Section 7 of IBC, 2016 against M/S Gensol EV Lease Limited, subsidiary of M/s Gensol Engineering Limited
Awaiting price reaction for this filing.
IREDA has filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 on May 15, 2025, against Gensol EV Lease Limited, a subsidiary of listed company Gensol Engineering Limited. The application is for recovery of a default amount of Rs. 218.95 Crore. Section 7 of the IBC allows a financial creditor like IREDA to initiate corporate insolvency resolution proceedings against a defaulting borrower. This filing could lead to NCLT admitting the case and starting the corporate insolvency resolution process (CIRP) for Gensol EV Lease Limited, potentially impacting Gensol Engineering's operations and financials.
This is negative for Gensol Engineering Limited shareholders as insolvency of its subsidiary could disrupt business and result in financial losses. For IREDA, this reflects recovery action on a stressed loan asset and may be seen as a positive step toward resolving the bad debt.