Gensol loan recovery: PFC may opt for DRT even as IREDA moves NCLT

Gensol Engineering is under increasing scrutiny as lenders ramp up efforts to recover over Rs 977 crore in sanctioned loans. In a significant move, Power Finance Corporation (PFC) is considering filing a case with the Debt Recovery Tribunal (DRT) to expedite the recovery process. The decision comes as Gensol's financial challenges continue to deepen, raising concerns among its creditors. Meanwhile, the Indian Renewable Energy Development Agency (IREDA) has taken a different approach by moving the National Company Law Tribunal (NCLT) to address the issue. This dual-pronged strategy by two major lenders highlights the severity of Gensol's financial woes and the urgency to resolve them. The NCLT approach by IREDA suggests a focus on restructuring Gensol's debts, which may offer a more sustainable solution. The contrasting strategies of PFC and IREDA underscore the complexities involved in loan recovery from a financially troubled entity like Gensol. As these proceedings unfold, the outcome could set a precedent for handling similar cases in the future. Stakeholders are keenly watching the developments, which may influence the company's ability to navigate its current financial crisis.

— Authored by Next24 Live