New Delhi: State-run Power Finance Corporation Ltd (PFC) said on Tuesday evening that it has filed a complaint with the Economic Offences Wing (EoW) of the Delhi police over the alleged filing of falsified documents by Gensol Engineering Ltd.
Mint had reported on Tuesday morning that PFC may approach the Serious Fraud Investigation Office and the EoW as well, as it explores all options to recover loans given to Gensol Engineering Pvt. Ltd, including moving the company law court.
In a statement, the power sector-focused lender said that it is actively pursuing further actions in the case. It added that, apart from filing a complaint with the EoW, PFC is also investigating the matter internally under its anti-fraud policy.
“Regarding communications from credit rating agencies CARE and Icra on the falsified documents, PFC clarified, that it did not issue the letters they referred to,” the statement said. “PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations.”
For context, Gensol allegedly forged letters from PFC and Ireda to show that it was regular in debt servicing towards the lenders, which rating agency Icra had earlier highlighted in a statement. Another rating agency Care also mentioned in its disclosures of communications such as no objection certificates from the lenders.
PFC’s statement further noted that aligning with India’s commitment under the Paris Agreement to reduce carbon intensity and the government’s push for electric vehicle (EV) adoption through schemes like FAME and PM E-bus Seva, PFC sanctioned ₹633 crore to Gensol Engineering Ltd in January 2023.
This funding was earmarked for the procurement of 6,000 EVs— ₹587 crore for procurement of 5,000 electric four-wheelers for lease to BluSmart Mobility’s ride-hailing service, and ₹46 crore for procurement of 1,000 electric three wheelers for cargo operations. However, the three-wheeler loan was not availed, it added.
Out of the ₹587 crore loan sanctioned towards electric four-wheeler vehicles, PFC had only disbursed ₹352 crore to Gensol for the leasing of 3,000 EVs to BluSmart Mobility. Till date, 2,741 vehicles have been delivered and hypothecated to PFC as confirmed by third party agencies appointed by PFC, said the lender.
The other lender
To be sure, PFC’s disclosure that it has the hypothecation for more than 90% of the electric cars for which it lent money to Gensol raises more questions for the other lender to the beleaguered company—Indian Renewable Energy Development Agency Ltd (Ireda).
As per the interim order from market regulator Securities and Exchange Board of India (Sebi), Gensol had borrowed money for buying 6,400 cars from PFC and Ireda. With PFC claiming that it funded only 3,000 cars, it implies Ireda lent money for the purchase of the remaining 3,400 cars.
However, Gensol only has 4,704 cars to show for the money it borrowed. With 2,741 of these vehicles being hypothecated with PFC, it leaves a maximum of 1,963 cars potentially under Ireda’s hypothecation. In other words, Ireda is likely to be 1,437 cars short, as per the disclosures made by Sebi and PFC.
Queries send to Ireda on late Tuesday evening did not elicit a response. The company also did not respond to Mint’s queries on the subject sent on Friday.
Meanwhile, PFC’s statement added that the company has pledge of Gensol’s equity shares and non-convertible debentures, a corporate guarantee from Gensol Ventures Pvt. 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,” the statement added. TRA refers to trust and retention account, and DSRA refers to debt service reserve account.
The company added that repayments on the disbursed amount had commenced with the repayment of ₹45 crore, leaving a principal outstanding of ₹307 crore as on 18 April.
“Until January 31, 2025, Gensol was servicing its dues regularly. In Q4’25, PFC invoked the Debt Service Reserve Account to clear February and March 2025 dues,” said the statement on Tuesday.
PFC’s shares on the BSE closed at ₹438 on Tuesday, higher by 0.44%, from its previous close. Ireda’s stock closed up 1.65% at ₹178.60.
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