IREDA Declares Gensol Engineering And Gensol EV Lease Loan Accounts As Fraud, Reports ₹672.74 Crore Exposure To RBI

The Indian Renewable Energy Development Agency Limited (IREDA) has declared the loan accounts of Gensol Engineering Limited and its subsidiary, Gensol EV Lease Limited, as fraudulent in a significant regulatory action. The state-owned Navratna company officially reported the matter to the Reserve Bank of India (RBI) on July 10, 2026, in line with the RBI’s Master Direction on Fraud Risk Management for Non-Banking Financial Companies (NBFCs), 2024.

According to an official filing, the combined outstanding loan amount linked to the two companies stands at ₹672.74 crore. Of this, Gensol Engineering Limited accounts for ₹453.77 crore, while Gensol EV Lease Limited has an outstanding balance of ₹218.97 crore.

IREDA stated that the fraud classification against Gensol Engineering Limited is based on allegations of misappropriation, criminal breach of trust, and forgery. The lender alleged that false documents or electronic records were created with the intention of committing fraud. In the case of Gensol EV Lease Limited, the reported nature of the fraud includes misappropriation and criminal breach of trust.

The action follows the regulatory framework established by the RBI, which requires financial institutions to identify, classify, and report fraudulent loan accounts in accordance with prescribed procedures. By reporting the accounts to the central bank, IREDA has completed a key compliance requirement under the latest fraud risk management guidelines applicable to NBFCs.

To reduce the financial impact arising from these loan defaults, IREDA confirmed that it has already created provisions covering 85% of the total outstanding exposure to both companies as of March 31, 2026. Such provisioning is intended to strengthen the lender’s financial position by accounting for potential losses associated with the defaulted loans.

The disclosure was signed by the IREDA Company Secretary and released under Regulation 30 read with Schedule III of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. These regulations require listed entities to promptly disclose material events that may have an impact on investors.

The development reflects IREDA’s commitment to maintaining financial discipline and regulatory compliance within its lending portfolio. It also highlights the increasing focus of government-backed financial institutions on addressing financial irregularities, improving transparency, and taking firm action against borrowers found to have violated lending terms or engaged in fraudulent practices.