NEW DELHI: Power Finance Corporation (PFC) on Tuesday said it is actively pursuing recovery measures and exploring all possible options to address pending dues of ₹307 crore from Gensol Engineering Ltd. The state-owned company also filed a formal complaint with the Economic Offences Wing (EoW), alleging that Gensol submitted falsified documents to misrepresent its debt servicing record.
These documents were purportedly used to suggest timely repayments, despite emerging evidence of defaults.
Gensol Engineering Ltd is currently under investigation by market regulator SEBI for alleged fund diversion and governance irregularities.
“PFC is actively pursuing further actions in the instant case and exploring all possible options,” said PFC in a statement.
Power Finance Corporation (PFC) sanctioned ₹633 crore to Gensol Engineering Ltd. in January 2023 for the procurement of electric vehicles. PFC said that the funding was intended to support the government’s electric vehicle adoption initiatives under schemes like FAME and PM E-bus Seva.
Of the total sanctioned amount, ₹587 crore was allocated for the procurement of 5,000 electric four-wheelers to be leased to ride-hailing platform BluSmart Mobility, while ₹46 crore was earmarked for 1,000 electric three-wheelers for cargo operations. However, the three-wheeler loan component was not availed by Gensol.
PFC further mentioned that as of April 2025, PFC has disbursed ₹352 crore to Gensol for the procurement of 3,000 EVs. So far, 2,741 vehicles have been delivered and hypothecated in favor of PFC, a fact verified by third-party agencies appointed by the financier.
Repayments on the disbursed amount have commenced, with ₹45 crore repaid as of April 18, 2025. The outstanding principal currently stands at ₹307 crore. Gensol had been servicing its dues regularly until January 31, 2025. However, in the fourth quarter of FY25, PFC was forced to invoke the DSRA to cover dues for February and March.
“PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations,” said the company in a statement.