IREDA Declares Gensol Engineering & Subsidiary as Fraud Accounts, Reports to RBI
New Delhi, July 10, 2026: Indian Renewable Energy Development Agency Ltd (IREDA) has officially declared the accounts of M/s Gensol Engineering Limited and its subsidiary M/s Gensol EV Lease Limited as fraud cases and reported them to the Reserve Bank of India (RBI).
This action has been taken as per the RBI’s Master Direction on Fraud Risk Management in Non-Banking Financial Companies (NBFCs), 2024.
Details of the Fraud Accounts:
| S.No | Borrower Name | Nature of Fraud | Amount Outstanding (₹ Crore) | Provision Held (as on 31.03.2026) |
|---|---|---|---|---|
| 1 | M/s Gensol Engineering Limited | Misappropriation, Criminal Breach of Trust, Forgery | 453.77 | 85% |
| 2 | M/s Gensol EV Lease Limited | Misappropriation and Criminal Breach of Trust | 218.97 | 85% |
Total Outstanding Amount: ₹672.74 Crore
Company Statement
IREDA stated that this declaration is in line with regulatory requirements. The company had earlier communicated updates on these borrowers to the stock exchanges. The latest disclosure has been made under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Analysis: IREDA, a key financial institution supporting renewable energy projects in India, has taken a firm stand on these accounts. Fraud cases in the renewable energy financing space are closely watched by the market as they can impact overall sector sentiment and future lending practices. This development comes at a time when the government is pushing aggressively for green energy capacity addition. IREDA is expected to strengthen its due diligence processes further to safeguard public funds while continuing to support genuine renewable energy projects.
Investors and stakeholders will monitor how this case progresses and whether any recovery is made from the declared fraud accounts.
Key Takeaway: With a total exposure of over ₹672 crore, this is a notable case in the renewable energy financing ecosystem. IREDA has already made significant provisions (85%) against these accounts.