Power Finance Corporation Ltd (PFC), a state-owned financial institution, has registered a complaint with Delhi Police’s Economic Offences Wing (EoW) against Gensol Engineering Ltd. The complaint accuses Gensol of producing false documents. PFC stated that it’s determined to secure its loan recovery and ensure transparency.
In a statement issued on April 22, PFC made it clear that it never issued any letters to credit rating agencies CARE and ICRA, even though Gensol is supposed to have forged the same for presenting itself as making timely debt repayments. The forged documents were revealed when the agencies called up the lenders to confirm.
Gensol, which had been associated earlier with the EV ride-hailing app BluSmart, is accused of forging letters from PFC and the Indian Renewable Energy Development Agency (IREDA) to misleadingly present itself as paying off its loans.
This EoW complaint is the fourth investigation into Gensol and BluSmart. The firm is also separately investigated by SEBI, the Ministry of Corporate Affairs, and the Enforcement Directorate (ED) potentially for money laundering.
In January 2023, PFC sanctioned a loan of ₹633 crore to Gensol to finance India’s electric vehicle programme. Of this, ₹587 crore was for 5,000 electric four-wheelers to be leased to BluSmart, and ₹46 crore for 1,000 electric three-wheelers (which were never funded). Up to now, ₹352 crore has been released for 3,000 vehicles, of which 2,741 EVs have been delivered and given as security to PFC.
So far, PFC is trying to recover ₹307 crore of unpaid principal. Although Gensol made its payments in a timely manner until January 31, 2025, PFC was forced to draw from the Debt Service Reserve Account (DSRA) to make payments for February and March 2025.
PFC also has various guarantees and securities of Gensol and its promoters, such as pledged shares, NCDs, corporate and personal guarantees, and fixed deposits of BluSmart.
While this, SEBI issued an interim order against Gensol and its promoters on suspected diversion of funds. Subsequently, Gensol’s shares fell 5% on April 22, taking its total decline in 2025 so far to 86%.
