IREDA Files Complaint Against Gensol for Document Fraud, Shareholding Dilution

The Indian Renewable Energy Development Agency (IREDA) has filed a complaint with the Economic Offences Wing (EoW) against Gensol Engineering, alleging the submission of falsified documents and unauthorized dilution of promoter shareholdings, which constitutes a breach of contract. IREDA has initiated an internal review of its exposure to Gensol, classifying the account as 'under stress' but not yet as a non-performing asset. The investigation and risk committees are closely examining the situation, with potential actions on collateral and recoveries pending the review's outcome. This follows similar actions by Power Finance Corporation (PFC), which also filed a complaint with the EoW after alleging significant unpaid dues from Gensol. The controversy has been compounded by regulatory actions against Gensol's promoters, with enforcement agencies conducting investigations and arrests related to the case. Both IREDA and PFC have urged stakeholders to avoid speculation until the reviews are complete.