Gensol Engineering Shares Sink 5% as ED Intensifies Probe

Market Performance

Gensol Engineering shares continued their downward spiral, hitting the 5% lower circuit on Tuesday, April 29, 2025.

The stock ended at Rs 86.50 apiece on the BSE, marking a sharp decline.

• Gensol Engineering shares have plunged over 50% in April 2025 alone.
• Trading activity remained muted following the ED raids, with little buying interest.

Main News

The Enforcement Directorate (ED) conducted extensive search and seizure operations on April 27, 2025, at Gensol Engineering's offices in Ahmedabad and Gurugram.

The raids were carried out under the Foreign Exchange Management Act (FEMA), 1999.

During the operation, the ED seized:

• Financial records
• Electronic devices
• Important documents

Additionally, the ED has issued orders under FEMA and the Income Tax Act of 1961 to major banks, including:

• Axis Bank
• HDFC Bank
• ICICI Bank

However, specific details regarding these orders have not been disclosed.

Company Details

Gensol Engineering, a notable player in the EPC sector, is currently grappling with regulatory scrutiny on multiple fronts.

The company acknowledged that the financial implications of the ED's action are still unclear.

Chief Financial Officer Jabir Mahendi M Aga confirmed that Gensol is exploring legal remedies to counter the ongoing proceedings.

Further compounding the company's challenges, the Securities and Exchange Board of India (SEBI) barred Gensol's promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from accessing the securities markets on April 15, 2025.

This action was taken following allegations of fund diversion and corporate governance failures.

SEBI's investigation revealed:

• Loans were allegedly used for personal expenses.
• Financial records showed irregularities, prompting ED and Ministry of Corporate Affairs (MCA) involvement.

Moreover, there are ongoing probes under the Prevention of Money Laundering Act for potential breaches of foreign exchange regulations.

Summary of the Article

The situation around Gensol Engineering shares continues to worsen as regulatory actions tighten.

The ED's raids and SEBI's interim orders have significantly damaged investor confidence, causing the stock to erode more than 50% this month.

With ongoing investigations and legal uncertainties, Gensol's near-term outlook remains clouded.