Indian Renewable Energy Development Agency Ltd. has filed a complaint with the Economic Offences Wing against Gensol Engineering Ltd. at a time the Enforcement Directorate seeks a lookout circular against the Jaggi brothers.
Ireda filed the complaint over alleged falsified documents and Gensol's dilution of promoter holding without its approval, according to a stock exchange notification on Friday.
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"Regarding communications from credit rating agencies on the falsified documents, Ireda clarified that it did not issue the letters they referred to," the company said. "The promoters have diluted their shareholdings without lender's approval, constituting breach of contract."
Ireda also clarified that while Gensol's account is currently under stress, it is not classified as a non-performing asset yet. The financial firm has also initiated an internal review, and its investigation and risk committees are "closely" examining the matter.
"Appropriate actions regarding collaterals and recoveries will be taken based on the outcome of the review," it added.
Ireda's move follows Power Finance Corp.'s announcement earlier this week, when it announced that it had registered a complaint against Gensol over falsified documents. PFC's complaint to the EOW marked the first executive-level action that Gensol faces even as regulatory actions shape up against the firm.
According to SEBI's investigation, Gensol raised Rs 975 crore in loans to acquire 6,400 electric vehicles but purchased only 4,704 units for Rs 567.7 crore. The regulator found that more than Rs 200 crore remained unaccounted for, triggering concerns about fund misuse.
Credit rating agencies ICRA and Care Ratings downgraded Rs 2,050 crore of Gensol's debt to default status in February. This included over Rs 1,640 crore in long-term borrowings and more than Rs 400 crore in short-term debt. The downgrades followed delays in loan servicing and concerns over alleged data falsification.
Gensol's shares have been consistently falling since then, hitting multi-month lows as regulatory and financial pressures mounted.
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