Gensol Fraud: PFC Says Taking Actions To Recover Dues
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.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
