Power Finance Corporation Ltd. is on the move to recover its dues from Gensol Engineering Ltd.
"PFC is actively pursuing further actions in the instant case and exploring all possible options," according to a statement issued by the public sector financier on Tuesday.
Considering the red flags raised by CARE and ICRA, the matter is under investigation internally in PFC under its anti-fraud policy. Additionally, PFC has filed a complaint with the Economic Offences Wing concerning the issuance of falsified documents.
In January 2023, PFC sanctioned Rs 633 crore to Gensol Engineering for the procurement of 6,000 EVs: Rs 587 crore for 5,000 electric cars for lease to BluSmart Mobility's ride-hailing service and Rs 46 crore for procurement of 1,000 electric three-wheelers for cargo operations. However, the three-wheeler loan was not availed.
Out of the Rs 587-crore loan sanctioned towards electric 4-wheeler vehicles, PFC had only disbursed Rs 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.
Additionally, PFC also has pledge of Gensol's equity shares and non-convertible debentures, a corporate guarantee from Gensol Ventures Pvt., 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.
Repayments on the disbursed amount had commenced with Rs 45 crore repaid, leaving a principal outstanding of Rs 307 crore as on April 18, 2025.
Until January 31, 2025, Gensol was servicing its dues regularly. In the March quarter, PFC invoked the Debt Service Reserve Account to clear February and March 2025 dues.
This is a developing story.
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