Gensol Engineering’s share price has plunged 92% so far in 2025 following the continuing corporate governance woes. In a latest development, adding another woes to the company, the National Company Law Tribunal (NCLT), Ahmedabad, has frozen every bank account and locker linked to the company, its promoters, and 34 other connected entities.
Trading in Gensol’s and the promoters securities on both BSE and NSE is suspended until further notice, according to CNBC TV18.
The order granted on May 28 demanded immediate action from the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) to lock down cash before it could “vanish into thin air,” as one broker quipped, as per CNBC TV18 report.
Gensol Engineering woes: What triggered the crackdown?
Regulators allege a multi-layered scheme of fund diversion, doctored ledgers, and asset sales disguised as routine business moves. The Ministry of Corporate Affairs (MCA) approached the NCLT after preliminary probes hinted at “grave misconduct” by Gensol’s top brass.
The tribunal agreed that waiting might mean watching evidence evaporate, hence the emergency freeze.
Gensol Engineering woes: Twin tribunals, Double trouble
While the NCLT iced liquid assets, the Debt Recovery Tribunal (DRT) in Delhi targeted bricks, mortar, and steel plus a fleet of electric vehicles.
The DRT restrained promoters Anmol Singh Jaggi and Puneet Singh Jaggi from selling or even shifting any secured assets. A court-appointed officer is already queuing up tow trucks to seize hypothecated EVs.
As per a CNBC TV18 report, depositories CDSL and NSDL have simultaneously frozen the promoters’ demat accounts, blocking any off-market share transfers.
Gensol Engineering woes: Rs 975 crore in the crosshairs
Investigators say as much as Rs 975 crore, originally borrowed for Gensol’s EV subsidiary, may have been siphoned off.
Multiple agencies such as the SFIO, SEBI, RBI, Income-Tax Department, and MCA are now working in sync, calling the case “a matter of public interest.”
Gensol Engineering woes: Countdown to June 3
After all this turmoil, all eyes now shift to June 3, 2025, when the matter returns to the regular NCLT bench. By then, every respondent must disclose worldwide assets which include the movable, immovable, tangible, intangible. Any attempt to mortgage, sell, or even gift those assets could be deemed contempt of court.
According to CNBC TV18, the coordinated freeze is one of the toughest interim actions against a mid-cap renewable player in recent times.