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Gensol Admitted Into Insolvency By NCLT Ahmedabad On IREDA Plea
- Gensol Engineering has been admitted to insolvency by the NCLT Ahmedabad on a plea from IREDA.
- An interim resolution professional is expected to be chosen for the corporate insolvency resolution process.
- Troubles for Gensol started when SEBI barred its promoters from the securities market, citing fund diversion in an electric vehicle purchase scheme.
- SEBI reported that Gensol raised ₹975 crore for 6,400 electric vehicles but bought only 4,704 units for ₹567.73 crore, leaving over ₹200 crore unaccounted for.
- Credit rating agencies downgraded Rs 2,050 crore of Gensol's debt to default status, leading to further scrutiny.
- Gensol submitted fabricated debt servicing conduct letters, prompting the appointment of a forensic auditor to examine its financial records.
- Despite early defaults, Gensol falsely claimed regular payments to rating agencies.
- Actions required include halting a stock split and thorough scrutiny of accounts and related parties.
- A detailed order from NCLT on Gensol's insolvency case is pending.
- IREDA and Power Finance Corp confirmed that no conduct letters were issued to Gensol as falsely claimed.
- An ongoing investigation reveals discrepancies in Gensol's financial dealings.
- The company's insolvency marks a significant development in its financial instability and regulatory issues.
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