Gensol Engineering’s stock took a significant hit during Tuesday’s trading, plunging by 5% following the resignation of key executives. Both Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi stepped down on Monday, creating a ripple effect in the market. By 10:15 AM, shares were valued at ₹51.25, a decline from the previous close of ₹53.95. The resignations came after an interim order from the Securities and Exchange Board of India (SEBI), which took effect on May 12.

Executive Resignations Amid Regulatory Scrutiny

Anmol Singh Jaggi formally announced his resignation, citing, “I am resigning from the position of Managing Director of Gensol Engineering Limited effective from the close of business hours on May 12, 2025, due to directives outlined in the SEBI Interim Order dated April 15, 2025.” This move has raised concerns among investors and stakeholders alike.

SEBI’s Allegations Against the Jaggi Brothers

The backdrop of these resignations is troubling. Last month, SEBI barred the Jaggi brothers from participating in the securities market indefinitely. They are accused of misappropriating loan funds from Gensol Engineering, leading to serious allegations of corporate governance failures and financial misconduct. The Jaggi brothers are not only the founders of Gensol Engineering but also BluSmart Mobility, both of which are pivotal in the clean energy and electric vehicle sectors.

Misuse of Funds and Corporate Governance Issues

SEBI’s interim order claims that Gensol was involved in fraudulent activities, particularly regarding a ₹978 crore term loan from the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). This loan was intended for acquiring 6,400 electric vehicles for leasing to BluSmart Mobility. However, investigations reveal that only 4,700 vehicles were purchased for ₹567 crore, leaving a staggering ₹262 crore unaccounted for.

What’s Next for Gensol Engineering?

The fallout from this situation has not only impacted the stock price but also raised questions about the future of Gensol Engineering. Investors are advised to stay updated with developments in this case, as regulatory actions can significantly influence market performance.

• Key Takeaways:
  • Gensol’s stock fell 5% after executive resignations.
  • Anmol Singh Jaggi cited SEBI’s interim order in his resignation.
  • Allegations include misuse of a ₹978 crore loan, with significant funds unaccounted for.

For investors, understanding the implications of these developments is crucial. Keeping an eye on Gensol Engineering’s responses and the ongoing regulatory investigations will be vital for making informed decisions.