IREDA Knocks On DRT’s Door To Recover $85 Mln From Gensol After NCLT Move
National Company Law Tribunal is set to hear IREDA’s insolvency petition against Gensol Engineering on 3 June
(The Corner Office Journal) -- Indian Renewable Energy Development Agency Ltd. (IREDA) has knocked on the door of Debt Recovery Tribunal (DRT) to recover around 729 crore rupees ($85 million) dues from Gensol after initiating an insolvency process against the company.
The state-run company on 20 May filed an application under Section 19 of The Recovery of Debts and Bankruptcy Act 1993 before the DRT in Delhi against Gensol Engineering Ltd. and Gensol EV Lease Private Ltd., IREDA said in a stock exchange announcement.
The company is seeking to recover 510 crore rupees from Gensol Engineering and 218.95 crore rupees from its arm Gensol EV Lease. IREDA didn’t provide further details.
The development comes after IREDA last week filed an insolvency petition before the National Company Law Tribunal (NCLT) against Gensol Engineering under Section 7 of the Insolvency & Bankruptcy Code, claiming a default of 510 crore rupees. The NCLT is set to hear the matter on 3 June.
The company has also filed an insolvency petition before the NCLT against Gensol EV Lease, claiming a default of 218.95 crore rupees.
IREDA, a non-banking financial company, provides financial assistance for setting up projects related to new and renewable energy sources as well as energy efficiency/conservation initiatives.
Gensol has been in the spotlight after SEBI via an interim order in April barred the company’s promoters from the securities market for alleged fund diversions and corporate governance lapses.
Note: $1 = 85.5945 Indian rupees
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