In a major leadership shake-up, Gensol Engineering has announced the resignation of its top promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from their executive roles. The announcement was made via an exchange filing on Monday, confirming that Anmol Singh Jaggi has stepped down as Managing Director, while Puneet Singh Jaggi has resigned from his position as Whole-time Director.

According to the filing, “Anmol Singh Jaggi, Managing Director and Mr Puneet Singh Jaggi, Whole-time Director, have tendered their resignation, the reasons are mentioned in their resignation letter. Consequently, they shall also cease to be a Member of the various Committee of the company.”

The resignations come in response to directions issued under an interim order by the Securities and Exchange Board of India (SEBI). The Jaggi brothers cited this SEBI directive as the primary reason for stepping down from their leadership roles.

The move follows weeks of turmoil for the renewable energy and electric mobility-focused firm. Gensol Engineering's shares have been under severe pressure, continuing their freefall with a 5% drop on Monday, touching a fresh 52-week low of ₹54.56. So far in 2025, the stock has plummeted by nearly 93%, wiping out significant shareholder value.

Both BSE and NSE have placed Gensol under the Enhanced Surveillance Measure (ESM) framework. This action is typically applied to mainboard-listed companies with a market capitalisation below ₹1,000 crore. As of the latest session, Gensol's market cap stands at ₹207.34 crore, a sharp drop from its earlier valuations.

The latest blow comes after the Securities Appellate Tribunal (SAT) denied interim relief to the company, which is under SEBI’s scanner for alleged fund diversion. SEBI had earlier barred the Jaggi brothers from accessing the stock markets and ordered a forensic audit into the company's financial operations.

As per the allegations by SEBI, the promoters allegedly diverted hundreds of crores of rupees, raised ostensibly for the procurement of electric vehicles, into luxury real estate and transactions involving related-party entities. These claims are currently under investigation, and the regulators have withheld the company’s proposed 1:10 stock split as a precautionary measure.

The Enforcement Directorate (ED) has also entered the scene, recently confiscating the stake held by Zenith Multi Trading DMCC in Gensol Engineering. The entity is allegedly linked to Hari Shankar Tibrewal, a key accused in the Mahadev Book app money laundering case.

Speculations have also arisen around the Jaggi brothers being summoned by the ED in connection to the ongoing investigation. However, Gensol has firmly denied these reports. On April 23, the company issued a clarification stating that neither the company nor its directors had received any communication from the ED.

“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,” Gensol said in its official statement.

The departure of both Anmol and Puneet Jaggi leaves Gensol Engineering in a vulnerable position at a time when it is battling regulatory probes, investor distrust, and financial uncertainty. While the company has not yet announced who will take over the leadership roles, industry analysts note that strong governance and immediate clarity on succession planning will be crucial to stabilising operations and restoring market confidence.

Market watchers are also closely observing the company’s next steps, particularly any responses to the clarifications sought by the stock exchanges and developments in the forensic audit ordered by SEBI.

With its leadership in transition and regulatory bodies tightening their scrutiny, Gensol Engineering finds itself at a critical juncture. The resignation of the Jaggi brothers, though significant, is just one piece of a larger puzzle involving questions about corporate governance, financial discipline, and the future of investor trust in India’s emerging green economy.