PFC, IREDA Looking To Auction Gensol’s EV Fleet To Secure Loans: Report

Power Finance Corp. (PFC) and Indian Renewable Energy Development Agency (IREDA) are preparing to auction thousands of electric vehicles (EVs) owned by financially distressed Gensol, according to sources familiar with the situation, as reported by Economic Times (ET).

The vehicles, which were acquired through loans from these public sector financial institutions, are currently leased to ride-hailing company BluSmart. Both companies share common leadership, with Anmol Singh Jaggi and Puneet Singh Jaggi serving as promoters for each organisation.

The Jaggi brothers currently face serious regulatory challenges, including a capital market ban and restrictions from holding positions in listed companies following accusations of fund diversion by market regulators.

Mounting Financial Concerns 

The lenders provided financing for over 5,000 vehicles, which are legally pledged to them as collateral. Sources indicate growing concern that Gensol may soon be classified as a non-performing asset (NPA) due to the interconnected operations with BluSmart and potential complications in debt resolution.

Previously, the loan repayments were maintained through lease payments from BluSmart's ride-hailing service. However, with BluSmart suspending operations on April 17, these rental payments are expected to diminish significantly, threatening the continued servicing of the loan account.

The Securities and Exchange Board of India (SEBI) has launched a comprehensive investigation into the Jaggi brothers and Gensol following preliminary findings that raised concerns.