Gensol Engineering, once a prominent player in India’s clean energy and electric mobility sectors, is now under intense scrutiny following serious fraud and governance allegations. The National Company Law Tribunal (NCLT) has taken decisive action, freezing the company’s bank accounts and lockers, raising concerns about the future of its associated ventures, including BluSmart.
Key Developments:
- NCLT’s Intervention: On May 28, 2025, the Ahmedabad bench of the NCLT ordered the freezing and attachment of all bank accounts and lockers belonging to Gensol Engineering and 37 associated individuals and entities. This action followed a petition by the Ministry of Corporate Affairs (MCA), alleging systemic fraud and gross mismanagement within the company.
- Allegations Detailed:
- Diversion of company funds by promoters.
- Severe violations of corporate governance norms.
- Manipulation of financial records.
- Defaults on loan repayments exacerbated by fraudulent declarations.
- Unlawful alienation of company assets.
- Regulatory Investigations: The MCA’s allegations are supported by findings from the Securities and Exchange Board of India (SEBI) and the Serious Fraud Investigation Office (SFIO), indicating a coordinated regulatory effort to address the misconduct.
- Impact on BluSmart: Gensol’s association with BluSmart, an electric ride-hailing service, has come under the spotlight. BluSmart had leased electric vehicles from Gensol, and the financial irregularities have raised questions about the stability and future operations of BluSmart.
- Legal Proceedings: In addition to the NCLT’s actions, the Delhi High Court is addressing a lease dispute involving Gensol’s subsidiary, Param Renewable Energy, and SMAS Auto Leasing India Private Ltd. The lessor alleges defaults on lease payments for electric vehicles, further complicating Gensol’s legal challenges.
These developments mark a significant turning point for Gensol Engineering and its associated entities. The unfolding legal and regulatory actions underscore the importance of robust corporate governance and financial integrity in India’s evolving clean energy and mobility sectors.
