State-owned Power Finance Corporation on Tuesday said it is actively pursuing further action and “exploring all possible options” on pending dues of Rs 307 crore from Gensol Engineering which came under market regulator Sebi’s lens for fund diversions and governance lapses.
The company has also filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents, that Gensol Engineering had filed to show its debt servicing track record.
PFC had sanctioned Rs 633 crore to Gensol Engineering in January 2023.
This funding was earmarked for the procurement of 6,000 EVs i.E. Rs 587 crore for procurement of 5,000 electric four wheelers for lease to BluSmart Mobility’s ride-hailing service and Rs 46 crore for procurement of 1,000 electric three-wheelers for cargo operations.
However, it stated that three-wheeler loan was not availed.
Out of the Rs 587 crore loan sanctioned towards electric four-wheeler vehicles, the PFC had disbursed Rs 352 crore to Gensol for the leasing of 3,000 EVs to BluSmart Mobility.
“Repayments on the disbursed amount had commenced with Rs 45 crore repaid, leaving a principal outstanding of Rs 307 crore as on April 18, 2025.
“Until January 31, 2025, Gensol was servicing its dues regularly. In Q4’25, PFC invoked the Debt Service Reserve Account (DSRA) to clear February and March 2025 dues,” the company said, adding “PFC is actively pursuing further actions in the instant case and exploring all possible options”.
Till date, 2,741 vehicles have been delivered and hypothecated to PFC as confirmed by third party agencies appointed by PFC, it stated.
Additionally, the company stated that the PFC also has pledge of Gensol’s equity shares and Non-Convertible Debentures (NCDs), a Corporate Guarantee from Gensol Ventures Private Limited, and Personal Guarantees from promoters.
Liquid assets in the form of TRA balances, DSRA balances, and Fixed Deposit by BluSmart with a lien marked to PFC are also in place.
Regarding communications from credit rating agencies CARE and ICRA on the falsified documents, the PFC clarified, that it did not issue the letters they referred to.
Further, considering these red flags, the matter is under investigation internally in PFC under PFC’s Anti-Fraud Policy.
Furthermore, it stated that the PFC has filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents.
The PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations, it stated.
Last week, the Sebi had barred Gensol Engineering and its promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities markets till further orders in a fund diversion and governance lapses case.
The markets watchdog also directed Gensol Engineering Ltd (GEL) to put on hold the stock split announced by it and restrained promoters from holding the position of a director or a key managerial personnel in any listed firm.
The order came after Sebi received a complaint in June last year relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.
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