Gensol Engineering finds itself embroiled in controversy as the Enforcement Directorate (ED) conducts searches and registers a case under the Foreign Exchange Management Act (FEMA). This development comes amid allegations of promoter fraud, which the company strongly denies.

ED Investigation and FEMA Case

The Enforcement Directorate has searched premises linked to Gensol Engineering Ltd. in Delhi, Gurugram, and Ahmedabad. A case under FEMA has been registered, signaling potential forex violations. The ED is currently recording statements from promoter Puneet Singh Jaggi in Delhi. Both Puneet and Anmol Singh Jaggi are under investigation following a SEBI report alleging financial misconduct and fund diversion.

Market Impact and Regulatory Action

The company's stock has plummeted, falling 18.56% since the controversy surfaced, with the stock locked in a 5% lower circuit for the sixth consecutive day. The Securities and Exchange Board of India (SEBI) has barred the company and its promoters from participating in the securities market, further intensifying the downward pressure on Gensol Engineering's stock price.

Official Statement

In an official communication to the stock exchanges dated April 23, 2025, Gensol Engineering addressed the rumors circulating in the market. The company stated:

"The Company/ any of its KMPs or directors including Mr. Anmol Singh Jaggi and Mr. Puneet Singh Jaggi, has not received any communication or notice from ED with respect to appearance regarding Mahadev book app case pursuant to fresh probe done by ED on 16.04.2025."

Background and Clarification

The clarification comes in response to recent news items suggesting that the promoters of Gensol Engineering were likely to be summoned by the ED in connection with the Mahadev Book app case.

The company emphasized that these reports are "factually incorrect, speculative, and misleading." Gensol Engineering reiterated that its promoters have no association with the Mahadev Book app case or any alleged financial transactions related to it.

Previous Disclosure

Gensol Engineering also referred to a past incident where shares of Zenith Multi Trading DMCC were attached by the ED. The company had disclosed this information to the BSE and NSE on March 13, 2024. It further noted that in subsequent filings for the quarter ended December 31, 2024, and onwards, the name of ED Raipur appears in place of Zenith Multi Trading DMCC.

Commitment to Transparency

The company assured stakeholders that any developments requiring disclosure under SEBI (LODR) Regulations, 2015, would be promptly communicated to the exchanges. Gensol Engineering urged all stakeholders to rely on official communications made by the company to the stock exchanges rather than speculative media reports.

Legal Stance

Gensol Engineering stated that it reserves the right to pursue legal remedies against the dissemination of false or misleading information that affects its market standing.

As the situation unfolds, investors and market participants are advised to stay tuned to official channels for accurate and up-to-date information regarding Gensol Engineering and its operations. The company continues to deny any association with the Mahadev Book app case, even as its stock price faces significant pressure in the market and the ED investigation progresses.

Gensol Engineering has issued a strong denial regarding recent media reports suggesting its involvement in the Mahadev Book App case. The company and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, have categorically stated that they have no association with the case currently under investigation by the Enforcement Directorate (ED).

Official Clarification

In an official filing to the stock exchanges dated April 23, 2025, Gensol Engineering addressed the speculation surrounding the company and its key management personnel. The company clarified that contrary to recent news items, they have not received any summons or communication from the ED regarding the Mahadev Book app case or any alleged fresh probe.

Jabir Mahendi M Aga, Chief Financial Officer of Gensol Engineering, stated in the filing:

"We categorically state that the news item is factually incorrect, speculative, and misleading. We reiterate that the promoters of Gensol Engineering Limited have no association with the Mahadev Book app case or the alleged financial transactions cited therein."

Previous Disclosure and Transparency

The company referenced a past incident where shares of Zenith Multi Trading DMCC were attached by the ED. Gensol Engineering had promptly disclosed this information to both BSE and NSE on March 13, 2024. The company also pointed out that in its filings for the quarter ended December 31, 2024, and subsequent periods, the name 'ED Raipur' has replaced 'Zenith Multi Trading DMCC', demonstrating their commitment to transparency in financial reporting.

Stance Against Misinformation

Gensol Engineering has urged all stakeholders to rely solely on official communications made to the stock exchanges and not on speculative media reports. The company has also indicated that it reserves the right to pursue legal remedies against the dissemination of false or misleading information that affects its market standing.

Commitment to Compliance

Gensol Engineering has assured investors and regulatory bodies that if any developments arise requiring disclosure under the SEBI (LODR) Regulations, 2015, they will promptly communicate such information to the exchanges.

This clarification from Gensol Engineering comes amidst increasing scrutiny on corporate governance and transparency in the Indian market. The company's swift and detailed response underscores the importance of accurate information dissemination in maintaining investor confidence and market integrity.