Shares of Gensol Engineering Ltd suffered another 5% lower circuit on Tuesday, 29 April, after the Directorate of Enforcement searched company offices and seized documents and electronic equipment.

The financial crime-fighting agency conducted a search on Gensol’s premises, taking documents and electronic equipment. According to the corporation, the financial impact of the Directorate of Enforcement’s search and seizure operations at its Gurgaon and Ahmedabad locations cannot be assessed.

Meanwhile, Power Finance Corp (PFC) and the Indian Renewable Energy Development Agency (IREDA) have filed charges alleging document fraud, with PFC also alleging nonpayment of a loan.

Anmol Singh Jaggi and Puneet Singh Jaggi, promoters and directors of Gensol Engineering, were prohibited from the securities market earlier this month by the Securities and Exchange Board of India (Sebi), reportedly for fund diversion and fraudulent conduct. 

Furthermore, the market watchdog asked Gensol Engineering to postpone the stock split that it announced.  According to Sebi, the monies were utilized for luxury real estate, intricate fund routing, and the suspected exploitation of public firm funds as if they were private.

Sebi began investigating the case following several complaints and subsequent downgrades of Gensol’s credit ratings by CARE Rating and Icra due to BluSmart Mobility, a Gensol-connected party, failing to service debt commitments on time.

Gensol Engineering made its public market debut in September 2019 with a small and medium enterprise (SME) initial public offering (IPO), and its promoters had a dominant 96% share, which has not decreased to a minor percentage.  However, retail individual shareholders have significantly expanded their position in the corporation.

Gensol Engineering works in the renewable energy industry, providing solar power engineering, procurement, and construction (EPC) services as well as unique electric mobility solutions.

At 11:48 am, the shares of Gensol Engineering were locked 5% lower at Rs 81.36 on NSE.

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