As the BluSmart scandal unfolds, ED seizes records from Gensol offices; shares plunge 47% in 13 days amid SEBI and FEMA scrutiny. Jaggi brothers step down from the board.
The Directorate of Enforcement (ED) conducted search operations at the Ahmedabad and Gurugram offices of Gensol Engineering, the company confirmed in a regulatory filing on Monday. This comes after BluSmart Mobility suspended its services indefinitely a few weeks ago.
Officials seized documents, electronic devices, and financial records during the operation, which was carried out under the Foreign Exchange Management Act (FEMA), 1999. The company stated it is currently unable to assess the financial implications of the search.
The enforcement action follows regulatory scrutiny of the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, who are being investigated by the Securities and Exchange Board of India (SEBI).
The probe centres around alleged misuse of loan funds intended for electric vehicle (EV) purchases. SEBI has banned the individuals from participating in the capital markets and holding directorships in listed entities.
In light of these developments, both promoters have resigned from the company’s board.
Gensol Engineering’s stock continued to decline on Monday, falling 5 per cent to reach its lower circuit limit and a new 52-week low of ₹86.50 on the BSE. This marks the 13th consecutive trading session of losses for the stock, which has plunged 47 per cent over this period.
The company had previously been in the spotlight for proposing a stock split, but investor sentiment has sharply shifted due to the ongoing investigations.
Gensol Engineering, known for its work in solar power and EV-related engineering services, has yet to issue a detailed response regarding the nature of the ED’s probe.
Market observers are closely monitoring the situation as regulators continue their investigations into alleged financial irregularities.
