IREDA's petition approved to recover thousands of crores from this company connected to BluSmart's Jaggi Brothers

The legal noose has started tightening around BluSmart Jaggi brothers Anmol Singh Jaggi and Punit Singh Jaggi, who have committed fraud worth thousands of crores of rupees. The petition to initiate bankruptcy proceedings against their flagship company, Gensol Engineering, has been approved by the National Company Law Tribunal (NCLT). The Indian Renewable Energy Development Agency (IREDA) filed this petition in the Ahmedabad bench of the NCLT for recovery of its Rs 510 crore loan (IREDA loan recovery).  

IREDA claimed in its petition that Gensol Engineering has not repaid the loans provided under five different loan facilities, totaling ₹ 863.30 crore. These include loans taken for electric vehicle (EV) fleet leasing and solar projects. IREDA stated that the company did not pay the installments due on March 31, April 19, and May 12, 2025, after which it issued demand notices.  

At the same time, Gensol Engineering opposed the petition, asserting that the claim of default has not been proven. Citing its financial stability, the company argued that its revenue and profit have increased over the past years.  

However, the tribunal (NCLT IREDA case) rejected these arguments. The NCLT bench, comprising Justice Shammi Khan and technical member Sanjeev Kumar Sharma, stated that the evidence of loans and defaults submitted by IREDA meets the requirements of Section 7 of the IBC.  

The tribunal also declined to appoint Pulkit Gupta, the resolution professional (IRP) proposed by IREDA, due to the potential conflict of interest stemming from his prior relationship with Gensol. Instead, Keshav Khaneja from the IBBI panel was appointed as the new IRP.  

The NCLT has also imposed a moratorium under Section 14, prohibiting the transfer or sale of Gensol Engineering's assets in any manner.  

Now, IRP Keshav Khaneja will take over the company's operations and invite claims from creditors. This will commence the process of assessing the company's financial position and preparing a potential resolution plan.