Admission of Application under Section 7 of Insolvency and Bankruptcy Code, 2016 against M/s Gensol EV Lease Limited, subsidiary of M/s Gensol Engineering Limited
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IREDA had filed a Section 7 application under the Insolvency and Bankruptcy Code against Gensol EV Lease Limited, a subsidiary of listed Gensol Engineering Limited, seeking recovery of dues. The NCLT Ahmedabad has now admitted this application on June 13, 2025, initiating the Corporate Insolvency Resolution Process (CIRP) against Gensol EV Lease Limited. The default amount stands at Rs. 218.95 crore. This follows IREDA's earlier communication on May 16, 2025, regarding the same borrower. IREDA, as the financial creditor, will now pursue resolution through the formal IBC mechanism.
For IREDA shareholders, this is a step forward in recovering a large stressed asset through formal insolvency proceedings, though actual recovery will depend on the resolution plan. For Gensol Engineering shareholders, this signals serious financial distress at the subsidiary level and potential further contagion risk to the parent company.