The National Company Law Tribunal (NCLT) at Ahmedabad on Friday issued notice in Indian Renewable Energy Development Agency (IREDA) insolvency plea against Gensol Engineering Limited. .A Bench of NCLT comprising Judicial Member Shammi Khan and Technical Member Sanjeev Kumar Sharma said, "Issue notice. Serve Gensol by all modes. List for hearing on June 3".During the hearing, Advocate Swati Soparkar urged the NCLT to appoint an Interim Resolution Professional (IRP) considering SEBI's order and the exit of top directors. She told the NCLT that Gensol is now 'headless' and the NCLT needs to appoint an IRP to take charge. The tribunal, however, refused to do so without hearing Gensol. .On May 15, IREDA announced that it had filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against publicly listed Gensol Engineering Limited, over a loan default exceeding ₹510 crore..Gensol's troubles began with SEBI’s April 15 interim order alleging that Gensol diverted hundreds of crores of rupees through related parties, used public and borrowed funds for unrelated luxury purchases - including a high-end apartment - and submitted forged “No Objection Certificates” and conduct letters to credit rating agencies.The regulator also found that the company misled investors with inflated EV procurement claims, while actual plant activity was negligible.Based on these findings, SEBI barred the company and its promoters - Anmol Singh Jaggi and Puneet Singh Jaggi - from accessing the securities market and restrained them from holding directorship or key managerial positions.On May 7, Securities Appellate Tribunal (SAT) refused to stay SEBI's interim order. SAT directed Gensol to file its reply to the interim order passed by SEBI and further directed the markets regulator to pass a final order within four weeks of hearing Gensol. .Meanwhile, a bunch of lessors have been moving the Delhi High Court time and again seeking to protect their interests in the Electric Vehicles (EVs) they had leased to Gensol's subsidiary BluSmart.On May 9, the Delhi High court directed the seizure and relocation of 129 electric passenger vehicles hypothecated to STCI Finance Ltd (plaintiff/ lender) by Gensol and BluSmart after the lender alleged that the companies had defaulted on a ₹15 crore loan and was seeking to unlawfully dispose of the vehicles.On May 7, the Delhi High Court had restrained Gensol and Blu Smart from alienating 220 more vehicles belonging to lessors Smas Auto Leasing and Shefastaq OPC.Earlier the Court appointed a receiver to take deemed custody of 95 electric vehicles leased to BluSmart Cabs by Clime Finance Private Limited, while restraining Gensol from creating third-party rights over the fleet.On April 25, the Court had restrained Gensol and BluSmart from alienating or creating third-party rights over 175 electric vehicles leased to them by Japanese financial services giant Orix..A team from Shardul Amarchand Mangaldas & Co briefed Soparkar
