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Indian Renewable Energy Development Agency (IREDA), one of two public sector lenders who had loaned money to scam-hit Gensol Engineering for buying electric vehicles, on Friday said the promoters of the firm breached the contract by diluting shareholding without lenders’ approval.

IREDA said it has filed a complaint with the Economic Offences Wing (EoW) for the contract breach on April 24.

“Following recent developments concerning Gensol Engineering Ltd and its promoters and associate companies, IREDA has initiated an internal review in accordance with RBI guidelines and the company’s due diligence protocols,” IREDA said in a stock exchange filing.

Gensol’s account is currently under stress but not classified as an NPA.

The Investigation and Risk Committees of IREDA are closely examining the matter, it said, adding appropriate actions regarding collaterals and recoveries will be taken based on the outcome of the review.


Regarding communications from credit rating agencies on the falsified documents, IREDA said it did not issue the letters they referred to. -PTI

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By Ajay ji

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