CBI probe launched into ₹672-crore IREDA loan case against Gensol, BluSmart

The CBI has initiated a formal investigation into allegations of financial irregularities involving a substantial loan extended by the Indian Renewable Energy Development Agency (IREDA) to renewable energy companies Gensol Engineering and BluSmart, officials said on Monday. The case centres on an alleged loss of approximately ₹672 crore, with the agency examining how the borrowed funds were utilized and whether proper due diligence was exercised during the lending process.

The action against the founders represents a significant development in a matter that has drawn regulatory attention to lending practices within India's renewable energy sector. IREDA, a government financial institution, had extended credit to support operations in the clean energy and electric mobility spaces, two priority sectors for national development.

Details regarding the specific charges, timeline of events, and extent of alleged mismanagement remain under investigation. The CBI's involvement signals that authorities suspect potential criminal wrongdoing beyond ordinary commercial disputes or contractual breaches.

The case underscores growing scrutiny of corporate loan disbursements and fund utilization practices, particularly in sectors receiving government backing and institutional financing. As investigations progress, they are expected to shed light on accountability mechanisms in renewable energy financing.