Beleaguered EPC player Gensol Engineering Ltd.’s shares sank to its five percent lower circuit in trade on Tuesday, April 29, after the Enforcement Directorate (ED) carried out search and seizure operations in the firm’s Ahmedabad and Gurugram premises.
The ED is stepping up its investigation into the solar and electric vehicle firms, according to a regulatory filing made on Monday.
Functioning under the Foreign Exchange Management Act, 1999 (FEMA), the ED 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, which is listed on both the BSE and NSE, stated that the financial implications of the Enforcement Directorate’s action are uncertain presently. The firm’s Chief Financial Officer Jabir Mahendi M Aga added that it is pursuing legal remedies in response to the proceedings initiated by ED.
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This raid comes amidst an interim order issued by of a Securities and Exchange Board of India (SEBI) on April 15, 2025, which barred Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in the securities markets owing to alleged fund diversion and corporate governance failures.
SEBI’s investigations revealed that certain loans were disposed towards personal expenses, triggering further scrutiny by the ED and the Ministry of Corporate Affairs. The companies financials are also being probed for possible violations under the Prevention of Money Laundering Act, as the ED investigates financial irregularities and potential breaches of foreign exchange regulations.
Shares of the company ended 5 percent lower on the BSE and were trading at a price of Rs 86.50 apiece. The stock has lost over 50 percent of its value over the course of this month.
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