MUMBAI: Indian Renewable Energy Development Agency on Wednesday filed an insolvency plea against troubled Gensol Engineering over a default of Rs 510 crore, the power financier said in an exchange filing.The application was filed under section 7 of theInsolvency and Bankruptcy Code.Troubles at Gensol unfolded after a Sebi probe revealed in April that the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, used loans from several creditors, taken in the name of Gensol, to buy a luxury flat, inflate Gensol’s stock price, for personal use through their private ventures, and for purposes other than those for which the loans were taken. They were also found to have forged no-default letters from lenders like IREDA and PFC to falsely project that there was no default by the company.In April, IREDA also filed a complaint with the Economic Offences Wing against Gensol. “Regarding communications from credit rating agencies on the falsified documents, IREDA clarified that it did not issue the letters they referred to. The promoters diluted their shareholdings without lenders’ approval, constituting a breach of contract,” IREDA said.Earlier this week, the Jaggi brothers stepped down from their positions on Gensol’s board, to comply with Sebi’s directive. IREDA and Power Finance Corp lent about Rs 977 crore to Gensol between FY22 and FY24, of which Rs 663 crore was meant for the purchase of electric vehicles that were to be leased by Gensol to its affiliate BluSmart. The ride-hailing firm, also promoted by the Jaggi brothers, suspended operations last month with its investors working on a resolution plan to revive the startup, sources said.The latest move by IREDA is the first instance of a creditor taking Gensol to the National Company Law Tribunal (NCLT). Over a month, Gensol’s stock has crashed nearly 54% on the BSE — often hitting the daily lower circuit.