Additionally, it has also made applications to the Debt Recovery Tribunal (DRT) against M/s Gensol Engineering Ltd. and M/s Gensol EV Lease Pvt. Ltd., under Section 19 of Recovery of Debt and Bankruptcy Act, 1993.
The amount for which the applications have been made are ₹510 crore and ₹218.95 crore, taking the total exposure to nearly ₹730 crore.IREDA highlighted that the loans are secured by hypothecation of project assets, extended charge of movable and immovable project specific assets and collateral of personal guarantee, corporate guarantee and pledge of 20% stake in Gensol Engineering Ltd.
As a result, Loan accounts of Gensol Engineering and Gensol EV Lease Pvt. Ltd., have been downgraded to NPA status and appropriate ECL provisions have been made, the company statement said.During the June quarter, IREDA’s gross NPA worsened to 4.13% from 2.45% in the March quarter, while net NPA deteriorated to 2.05% from 1.35% in March.
Additionally, one of the borrowers of the company had filed a writ petition for seeking to not declare the loan accounts of the company as NPA and restrain the financial institutions to take coercive action against them in view of the reduction and non-payment of the agreed tariff by Andhra Pradesh Southern Power Distribution Company Ltd. (APSDCL).
However, the Amravati High Court passed an order on July 2, 2025, vacating the interim orders and stay on any coercive action and declare the accounts as NPA.
As a result, the loan outstanding of ₹783.34 crore as of June 30, 2025 has been reclassified to NPA from a Stage-II assets and included in the Gross NPA assets of the quarter. The company has provided impairment provisions adequately in the earlier years against such accounts.
Shares of IREDA ended 2.4% higher at ₹169.88.
