New Delhi: The Ahmedabad bench of the National Company Law Tribunal (NCLT) has allowed the Central government to attach the bank accounts and lockers of Gensol Engineering Limited, its 10 subsidiaries and several individuals, noting that investigation reports and regulatory findings by multiple government agencies have revealed a systemic fraud. “It is averred that the Respondent companies are found to be in blatant violation of corporate governance norms, including diversion of funds by promoter entities, rerouting of borrowings raised for specific purposes in a fraudulent and illegal manner, which amounts to gross violations of the Companies Act, 2013,” said the NCLT in an order dated May 28.
The blocks—Semhardih Phosphorite and Limestone Block and Raipura Phosphorite and Limestone Block—were awarded to NLCIL following an e-auction conducted by the Ministry of Mines, Government of India, on May 15 and 16, 2025.
This development marks a strategic diversification for NLCIL, traditionally known for its lignite mining and power generation operations. The acquisition of these mineral blocks aligns with the company’s broader vision of contributing to India’s critical mineral security and supporting the nation’s strategic needs in fertilizers and industrial minerals.
The company is expected to take further steps towards obtaining statutory clearances and developing the blocks for commercial production in due course.
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