Gensol Engineering Limited, a listed company on both the BSE and NSE, disclosed today that the Directorate of Enforcement (ED) conducted search and seizure operations at the company's premises in Ahmedabad and Gurgaon.
According to the regulatory filing submitted to stock exchanges, the raids were carried out under provisions of the Foreign Exchange Management Act (FEMA), 1999. The ED officials seized several documents, electronic devices, and financial records during the operation that took place on April 27.
In compliance with SEBI regulations, Gensol Engineering informed investors that orders under Section 37 of FEMA read with Section 132(3) of the Income Tax Act were issued to multiple banks including Axis Bank, HDFC, and ICICI Bank, potentially restricting certain financial operations.
The company's Chief Financial Officer, Jabir Mahendi M Aga, signed the disclosure stating that "the quantifiable financial impact on the Company cannot be ascertained at this point in time." The filing also mentioned that the company is "in the process of taking appropriate legal measures" in response to the enforcement action.