Debt Recovery Tribunal bars Gensol promoters from sale or transfer of assets

The Debt Recovery Tribunal (DRT), Delhi, has barred promoters of Gensol Engineering from selling or transfer of ownership of the secured assets of the company, in a petition moved by stated owned NBFC Indian Renewable Energy Development Agency(IREDA). The assets in question are largely Electric Vehicles (EVs) that were financed by non-banking financial companies(NBFCs) including Indian Renewable Energy Development Agency(IREDA) and Power Finance Corporation (PFC).

The tribunal has also asked the court appointed officer to take possession of the Blu Smart cabs that were financed by various lenders.

“concerned defendants are hereby restrained from selling, transferring, alienating, damaging,removing and disposing off or otherwise creating third party interest with regard to secured assets, movable & immovable, as detailed in the said paragraphs, until further orders.” Said the 8 page DRT order dated May 28.

The tribunal has also ordered depositories NSDL and CDSL to provide information regarding Demat accounts and bank accounts that may be related to the promoters of Gensol Engineering. “If any Demat accounts exist, NDSL and CDSL are directed to freeze the account and file the details of shares with this tribunal;” the DRT Delhi order added.
The development comes as various creditors are making attempts to recover Rs 510 crore worth dues.