Gensol Engineering shares in focus as ED raids Ahmedabad, Gurgaon offices over FEMA probe

Gensol Engineering shares: The agency also issued directives under the Foreign Exchange Management Act (FEMA) and the Income Tax Act, 1961, to Axis Bank, HDFC Bank, and ICICI Bank. However, the specific contents of these orders have not been made public.

Gensol Engineering shares will remain in focus on Tuesday after the Enforcement Directorate (ED) conducted raids at the company’s premises in Ahmedabad and Gurgaon as part of a probe under the Foreign Exchange Management Act (FEMA), the company said in an exchange filing on Monday.During the search operations, the ED seized documents, electronic devices, and financial records. “This search and seizure was conducted under the provisions of the Foreign Exchange Management Act, 1999,” the filing stated.

The agency also issued orders under FEMA and the Income Tax Act, 1961, to Axis Bank, HDFC Bank, and ICICI Bank. Specific details of these orders were not disclosed.Also Read: Aptus Value, Chambal Fertilisers among 10 small-cap stocks where FIIs increased stake in Q4Gensol, listed on the BSE and NSE, said the financial impact of the ED action could not be determined at this stage.

The company, led by CFO Jabir Mahendi M Aga, added that it is taking appropriate legal steps in response to the developments.The raids follow a Securities and Exchange Board of India (SEBI) interim order on April 15, 2025, barring Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from securities markets for alleged fund diversion and corporate governance lapses. SEBI’s probe revealed misuse of loans for personal expenses, prompting further investigations by the ED and the Ministry of Corporate Affairs.

Also Read:Jio Financial Services, Polycab among 10 largecap stocks where FIIs cut stakes in Q4 FY25Gensol, which operates in the solar EPC and EV leasing space, has come under increasing regulatory pressure. Its shares have plunged 83% in 2025 amid concerns about its financial health and mounting legal troubles. The company is also being investigated under the Prevention of Money Laundering Act for suspected financial irregularities and foreign exchange violations.

On Monday, Gensol shares hit the lower circuit limit for the 13th consecutive session, falling 5% to a new 52-week low of Rs 86.50 on the BSE. The stock has lost 47% over this 13-day period.

Promoters Anmol Singh Jaggi and Puneet Singh Jaggi remain under SEBI scrutiny for allegedly diverting loan funds. SEBI has barred them from holding any positions in listed companies.Also Read: 25 Transformative Investment Ideas: RIL, SBI among HDFC Securities' high-conviction stock picks(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

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