The Indian Renewable Energy Development Agency (IREDA) has formally classified loan accounts linked to Gensol Engineering and its associated entity, Gensol EV Lease, as fraud. The decision follows findings related to misuse of funds, breach of trust, and forgery, with IREDA reporting both accounts to the Reserve Bank of India (RBI) as mandated under applicable regulatory norms. The combined exposure across both classified accounts stands at ₹672.74 crore, underscoring the significance of the development for IREDA's asset quality and its broader implications for the renewable energy financing landscape.

Fraud Classification Details

IREDA has identified two separate loan accounts as fraudulent. The following table outlines the key details of the classified accounts:

Grounds for Classification

The fraud classification by IREDA is based on three primary grounds:

• Misuse of funds: Loan proceeds were allegedly not utilised for their intended purpose.
• Breach of trust: The borrowing entities are alleged to have violated the fiduciary obligations and terms agreed upon with IREDA.
• Forgery: Fraudulent documentation is cited as part of the basis for the classification.

Regulatory Reporting

In line with regulatory obligations, IREDA has reported both the Gensol Engineering and Gensol EV Lease loan accounts to the RBI. Such reporting is a standard requirement under RBI guidelines when a lender classifies a borrower account as fraud, ensuring systemic oversight and enabling coordinated action across the financial sector. The order regarding this classification was issued by IREDA on July 9, 2026.

In a recent development concerning Gensol Engineering , the National Company Law Appellate Tribunal (NCLAT) has issued instructions to the National Company Law Tribunal (NCLT) regarding a plea from Harsh Singh, a former independent director of the company.

NCLAT's Directive

The NCLAT has directed the NCLT to hear and pass an order on Singh's plea, which challenges an earlier NCLT verdict. The previous ruling had ordered an investigation into individuals associated with Gensol Engineering.

Timeline for Action

According to the NCLAT's instructions, Harsh Singh has been given a two-day window to file a stay vacation application. This tight timeline underscores the urgency of the matter in the ongoing legal proceedings.

Background of the Case

The case stems from recent actions by the NCLT, which had initiated insolvency proceedings against Gensol Engineering and its subsidiary, Gensol EV Lease. The exact details of these proceedings and the reasons behind the investigation order are not specified in the current update.

Implications for Gensol Engineering

This development adds another layer of complexity to the legal and financial challenges facing Gensol Engineering. The outcome of Singh's plea and the subsequent NCLT decision could have significant implications for the company and its associated individuals.

As the situation unfolds, stakeholders will be closely watching the NCLT's response to the NCLAT directive and the potential impact on Gensol Engineering's ongoing insolvency proceedings.