In a statement released on Tuesday evening, PFC revealed that out of the Rs 352 crore it had disbursed to Gensol Engineering in 2023 for leasing electric vehicles, Rs 307 crore remains unpaid.
The company is actively pursuing options to address the situation, including filing a complaint with the Economic Offences Wing of the police over the alleged falsification of documents.
In January 2023, PFC sanctioned Rs 633 crore to Gensol Engineering for the procurement of 6,000 electric vehicles, including Rs 587 crore for the purchase of 5,000 electric four-wheelers for BluSmart Mobility’s ride-hailing service and Rs 46 crore for 1,000 electric three-wheelers for cargo operations. However, the three-wheeler loan was not utilised by Gensol, PFC mentioned.
Repayments had started, with Rs 45 crore returned, leaving an outstanding principal of Rs 307 crore as of April 18, 2025. “Until January 31, 2025, Gensol was regularly servicing its dues,” PFC stated, adding that in the fourth quarter, the company had to use its Debt Service Reserve Account (DSRA) to clear dues for February and March.
Also Read: XRP overtakes Bitcoin in trading surge, PEPE enters top 10: What’s driving India’s new crypto bets?Ratings agencies CARE and ICRA downgraded Gensol Engineering’s credit rating last month, citing falsified documents. PFC clarified in its statement that it did not issue the letters referred to by the agencies.”Considering these red flags, the matter is under investigation internally in PFC under PFC’s Anti-Fraud Policy. Furthermore, PFC has filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents,” the statement added.
The PSU added that it is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations.
PFC stock is down 5% year-to-date on the BSE but has gained nearly 240% over the last two years. Its current market capitalisation is Rs 1,41,046 crore.
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