2 days ago
Shares of Gensol Engineering Ltd. continued their sourthward journey on Tuesday, April 29, falling another 5% to hit a fresh lower circuit limit. The crisis-hit company has lost 55% of its market value so far this month.
The profit booking in Gensol shares were triggered after the company said that the Directorate of Enforcement (ED) had carried out search and seizure operations at its offices in Gurgaon and Ahmedabad.
The ED is stepping up its investigation into the solar and electric vehicle firms, as per a regulatory filing made by Gensol on Monday.
The company said that the ED has seized documents, electronic devices, and financial records during the raids on April 27, 2025. Orders have been issued under FEMA and the Income Tax Act, 1961, against Gensol Engineering, to Axis Bank, HDFC, and ICICI Bank, although specific details of the orders were not disclosed.
Gensol Engineering said that the financial implications of the ED's action are uncertain presently. CFO Jabir Mahendi M Aga said that the company is pursuing legal remedies in response to the proceedings initiated by ED.
In a fresh developemnt, the Delhi High Court has reportedly appointed a receiver to take deemed custody of 95 electric vehicles leased to BluSmart Cabs by Clime Finance, while restraining Gensol from creating third-party rights over the fleet.
Gensol has been under increasing scrutiny after the capital markets regulator SEBI raised concerns about the company's activities earlier this month. SEBI took several actions against Gensol on April 15, saying that it may have diverted funds raised for business purposes towards personal luxury purchases.
The regulator also alleged that Gensol had defaulted on loans, including debt used to finance electric vehicle purchases for its ride-hailing start-up BluSmart Mobility. Gensol has denied defaulting on loans.
Gensol’s troubles are closely intertwined with those of BluSmart, co-founded by Anmol Singh Jaggi, who was also the Managing Director of Gensol Engineering until recently.
Since SEBI's actions, two major financial institutions, Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA), have filed complaints against Gensol.
Sources had told CNBC-TV18 on April 24 that the ED had arrested Puneet Jaggi in Delhi and is conducting searches against Gensol as part of the FEMA probe.
The ED has begun the investigation based on the SEBI action against both Anmol and Puneet Jaggi, sources added.
Shares of Gensol Engineering are in a 5% lower circuit at ₹81.36.
