GENSOLNSEGensol Engineering LimitedCriticalNegative
Announced Tue, 14 Jul · 13:19 IST
IREDA declares Gensol loans of Rs 673 crore as fraud, reports to RBI
Price reaction · full curve
Awaiting price reaction for this filing.
AI summary
IREDA has formally declared Gensol Engineering's loan accounts as fraud and reported the matter to RBI via an order dated July 9, 2026. The fraud relates to about Rs 673 crore across multiple project loans, with a forensic audit flagging Rs 225.89 crore in diversions, including funds allegedly used for a luxury apartment booking at The Camellias by DLF. Gensol is already under insolvency (CIRP) initiated by NCLT in June 2025, with a Resolution Professional now running the company.
Likely market impact
Highly negative for shareholders. Fraud classification by IREDA and ongoing insolvency severely weaken recovery prospects. Stock likely to remain under pressure.