SUMMARY

Within the latest order, NCLAT restricted Gensol IRP from leasing 152 EVs, because the lease settlement expired earlier than Gensol’s insolvency proceedings started

The order got here on a petition filed by SMAS Auto Leasing India, considered one of Gensol’s lessors, which had leased out 164 automobiles to the corporate

Gensol has been underneath insolvency proceedings since June 13

The Nationwide Firm Regulation Appellate Tribunal (NCLAT) as we speak restricted Gensol Engineering interim decision skilled (IRP) from leasing out 152 EVs, which it had taken on hire from SMAS Auto Leasing India earlier than going into insolvency.

The order got here after SMAS filed a plea on IRP Keshav Khaneja’s bid to lease a fleet of automobiles at a hard and fast month-to-month rental, reported Mint.

Khaneja reportedly issued a public discover, inviting bids to lease 4,000 EVs in Delhi-NCR and Bengaluru. SMAS Auto moved the tribunal, claiming that the lease for these 152 EVs had led to April, days earlier than Gensol entered the insolvency proceedings.

In as we speak’s courtroom listening to, a bench led by chairperson Justice Ashok Bhushan ordered that the IRP was not allowed to lease or get rid of the 152 EVs, because the lease settlement expired earlier than the Company Insolvency Decision Course of (CIRP) started.

“It’s submitted that these e-vehicles that are in possession of the lessor previous to initiation of the CIRP can’t be interfered by the impugned order,” the NCLAT mentioned.

SMAS Auto had leased 164 EVs to Gensol. Whereas the bench has restricted the lease for 152, the remaining 12 keep underneath the possession of the IRP until the subsequent listening to on August 28.

Gensol used to lease these EVs to BluSmart, considered one of its group firms. 

How The Gensol Saga Unfolded 

Gensol’s finish recreation started again in April, when SEBI highlighted that the promoters of Gensol Engineering, Jaggi brothers, misled the regulatory physique, credit standing companies (CRAs), lenders and buyers by utilizing the corporate’s funds for private use. 

The markets regulator barred the Jaggi brothers from holding any key managerial positions on the firm. 

On April 24, the Enforcement Directorate detained Puneet Singh Jaggi to query him relating to the Gensol fraud. Nonetheless, he was later granted anticipatory bail from the Delhi Excessive Courtroom.

In the latest improvement, SEBI upheld its interim findings within the case in addition to instructions in opposition to Jaggi brothers. With all this, Gensol has been underneath insolvency proceedings since June 13.

Final month, the Ahmedabad bench of the NCLT additionally admitted an insolvency plea in opposition to BluSmart over unpaid dues of INR 1.28 Cr. The EV ride-hailing firm additionally suspended its operations in April and shut down its app later.