Shares of Power Finance Corporation Limited (PFC) were trading at ₹430.15, down ₹8 or 1.83% at 10:25 AM on the NSE from the previous close of ₹438.15 on the NSE. The stock opened higher at ₹439.70 and touched an intraday high of ₹441.00, but later slipped to a low of ₹429.40.
State-owned Power Finance Corporation (PFC) is intensifying efforts to recover ₹307 crore in pending dues from Gensol Engineering, which is currently under the regulatory lens of SEBI over alleged fund diversions and governance issues.
In January 2023, PFC had sanctioned a ₹633 crore loan to Gensol Engineering to support the procurement of 6,000 electric vehicles (EVs), ₹587 crore allocated for 5,000 electric four-wheelers to be leased to BluSmart Mobility, and ₹46 crore for 1,000 electric three-wheelers. However, the latter portion of the loan was never availed.
Of the sanctioned amount, ₹352 crore was disbursed to Gensol for 3,000 four-wheelers. Initially, repayments began smoothly, with ₹45 crore already repaid.
However, as of April 18, 2025, an outstanding principal of ₹307 crore remains. In Q4 FY25, due to missed payments, PFC had to invoke the Debt Service Reserve Account (DSRA) to cover dues for February and March.
PFC confirmed that 2,741 EVs have been delivered and hypothecated as security. Additional safeguards include pledges of Gensol’s equity shares and NCDs, a corporate guarantee from Gensol Ventures Pvt. Ltd., and personal guarantees from the promoters.
There are also liquid assets like TRA balances, DSRA balances, and fixed deposits from BluSmart held under lien by PFC.
Amid rising concerns, PFC has launched an internal probe under its Anti-Fraud Policy. It has also filed a formal complaint with the Economic Offences Wing (EoW) regarding falsified documents allegedly submitted by Gensol to reflect a misleading debt servicing history.
The issue gained further momentum after credit rating agencies ICRA and CARE raised red flags over document discrepancies. PFC has clarified that it did not issue the letters referenced in those concerns.
SEBI, acting on a complaint from June 2024, recently barred Gensol Engineering and its promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities market over suspected fund misappropriation and manipulation of share prices.
The regulator also directed the company to halt a planned stock split and restricted its promoters from holding directorial or key management roles in any listed entity.
Shares of Gensol Engineering Limited were locked at the lower circuit limit of ₹99.91, down ₹5.26 or 5% from the previous close of ₹105.17. The stock opened at ₹99.91 and remained stuck at that level throughout the session, marking its ninth lower circuit hit this month.
As the investigation unfolds, PFC remains committed to recovering its dues while upholding transparency and financial integrity. This case marks a critical juncture in addressing financial misgovernance within India’s clean energy and EV leasing space, with potential implications for future institutional lending norms.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 23, 2025, 10:45 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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