Fresh Trouble for Gensol? NCLAT Orders NCLT to Rule on Ex-Director’s Petition

Shares of Gensol Engineering declined by 2% to Rs 45 on National Stock Exchange (NSE) after the National Company Law Appellate Tribunal (NCLAT) has instructed the National Company Law Tribunal (NCLT) to consider and pass an order on a petition filed by Harsh Singh, former independent director of the company.

Singh is understood to be challenging a directive to probe individuals linked to the company, including himself, according to media reports.

In its order dated June 16, the appellate body allowed Singh two days to submit a request before the NCLT seeking a stay on its earlier ruling.

"The appellant, who has already appeared before the Tribunal, may either respond to the interim stay application or file a vacation application within two days, incorporating all grounds presented before us," the NCLAT noted, adding that the next NCLT hearing is scheduled for June 19, 2025.

The NCLAT further emphasized that if such an application is filed within the given time frame, the NCLT must rule on it in accordance with the law, after hearing all relevant parties.

Also Read: Gensol Subsidiary Taken to Delhi High Court Over EV Lease Default: Key Highlights | Republic World

Earlier, on May 28, 2025, the Ahmedabad bench of the NCLT had ordered a probe into individuals associated with Gensol Engineering, including both current and former directors, key managerial personnel, as well as the company’s chartered accountant and company secretary.

Singh, who has since stepped down from the board of Gensol, moved the appellate tribunal to challenge the investigation. His resignation came in the wake of SEBI’s allegations against the company’s co-founders concerning alleged misuse of funds.

It may be recalled that the Securities and Exchange Board of India (SEBI) had issued a strict order against Gensol Engineering Limited (GEL) and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, over serious allegations of misusing and diverting company funds. The capital markets regulator has also barred Gensol Engineering and its promoters, from participating in the securities markets until further orders.

To add to the company's woes, Gensol Engineering Ltd.'s subsidiary- Param Renewable Energy, -was taken to the Delhi High Court by electric vehicle lessor SMAS Auto Leasing India Pvt Ltd. The petition sought the urgent appointment of a court receiver to seize electric vehicles (EVs) leased to Param Renewable, amid rising defaults and lack of asset visibility.