Lower Circuit Stocks: People are selling these shares continuously for 23 days, lower circuit every day for 18 days!

News Topical, Digital Desk : Tuesday, May 13, 2025 is another day of decline for Ahmedabad-based company Gensol Engineering shares. The company's shares are on a lower circuit of 5% and the price has now fallen to Rs 51.25 per share. This is the same company whose shares were at a peak of ₹ 1124 last year. But now with a massive fall of 94%, the dreams of investors have been shattered. What happened that Gensol has become like this? Let's understand this story!

Jaggi Resignation: Jaggi brothers left the chair
On Monday evening, Gensol's Managing Director Anmol Singh Jaggi and Whole-Time Director Puneet Singh Jaggi resigned from their posts. Anmol wrote in his resignation, "I am resigning due to SEBI's order dated 15 April 2025. I thank the board, management and employees for their support." But this resignation is no ordinary event—behind it is a big scam, which shook the stock market. 

SEBI exposed: Embezzlement of ₹ 262 crore? SEBI made serious allegations against Gensol in its interim order in April. The company had taken a loan of ₹ 978 crore from IREDA and PFC, with the aim of purchasing 6,400 electric vehicles (EVs) and leasing them to BlueSmart Mobility. But the surprising thing is that only 4,700 vehicles were purchased, which cost ₹ 567 crore. What happened to the remaining ₹262 crore? SEBI says the money went to the wrong places - luxury flats, golf sets, and accounts of relatives of the Jaggi brothers. One example is a ₹43 crore flat in DLF Camellias in Gurugram, bought by a company linked to the Jaggi brothers. In addition, SEBI found that Gensol created forged documents, showing fake “conduct letters” in the name of IREDA and PFC. The letters claimed that loan installments were regular. But both lenders have denied these documents. 

BlueSmart is also in a bad shape The storm of Gensol did not spare BlueSmart Mobility, also owned by the Jaggi brothers. BlueSmart, which was known for its electric taxi fleet, shut down its services in Delhi, Mumbai and Bangalore. The company sent messages to users saying that if the services were not resumed within 90 days, the wallet balance would be refunded. 

23 days, 18 lower circuits: Investors' trust broken Shares of Gensol have been falling continuously for the last 23 days, with 18 lower circuits of 5%. Shares have fallen 59% in the last one month and 18.5% in a week. Shares rose only twice in the last 49 trading sessions. The rest of the time, the stock saw a sharp decline. The number of investors in this company was 155 in 2020, which has now increased to more than 1.1 lakh. 

Action by SAT and MCA Gensol challenged SEBI's order in the Securities Appellate Tribunal (SAT), but did not get any relief. The company claimed that SEBI's order was issued without a hearing, causing huge losses to the business. SAT asked Gensol to respond in two weeks, and directed SEBI to give a final order in four weeks. Meanwhile, the Ministry of Corporate Affairs (MCA) has also started an investigation into Gensol and Bluesmart. ICAI (Institute of Chartered Accountants of India) is also examining the financials for 2023-24. 

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