It is understood that the RBI is considering launching a probe on the subscription processes of IREDA and PFC after a Sebi investigation into Gensol engineering revealed that the issue of loans does not meet the subject, the sources said. The rating agencies also marked the lack of reimbursement of the loans, which led to the company being reduced.
In a provisional order on the company and its promoters on Tuesday, the market regulator, the Bag Board and Exchange of India (Sebi) said that the term loans provided by the two non -banking financial companies to the company for buying electric vehicles had deviated to the personal use of the founders, including the purchase of an expensive floor in a luxury project in Gurgaon.
Misuse of funds
Sebi’s analysis of the use of loans received by Gensol de IReda and PFC showed that the company had missed the funds and also diverted funds to the entities related to the promoter and the promoter.
The company was also a delinquent to make quotas on loans, Sebi’s investigation aging.
IREDA and PFC did not respond to the emails sent to the thematic clarification about loans to Gensol and their monitoring of their final use. RBI had not yet responded for printing time.
From the fiscal year22 to the fiscal year24, the two lenders had advanced loans of around ₹ 978 million rupees to the company, whose most was for the acquisition of electric vehicles and a small portion to carry out EPC works. Gensol Engineering is dedicated to providing solar consulting services and is also an EPC contractor for renewable energy projects.
Loan tasks to buy electric vehicles from a related party entity and lease them to the transport service that Blusmart were not completely used for the purpose of intention.
Regulatory failures
IREDA and PFC are public financial institutions governed by RBI prudential standards and, as such, have the duty to inform the breaches, erroneous statements or sustained fraudulent activity.
“His breach of the alleged discrepancies raises concerns about regulatory inertia. According to RBI’s master instructions on fraud and the code of fair practices, such institutions are not obliged to the authorities of non -butulent activities, including Sebi, when a quoted entity is involved,” said Sonam Chandwani, managing partners and associated partners and associated partners and associates associated and associated associated associates
His silence in this matter is problematic and can deserve independent investigation into lapses in supervision, “he added.
The details of the information provided by IREDA and PFC to Sebi on the state of service of the Debt of Gensol showed that since December the company had not saved had been breaching its payments, whether not paying at all or making backward payments.
“IREDA and PFC need to adjust their loan standards,” said S Subramanian, founder and MD of the Advisory firm of Ingberny Research Services.
Posted on April 17, 2025