After a SEBI report exposing irregularities and misappropriation of loan money, the Enforcement Directorate (ED) is prepared to look into the promoters of Gensol Engineering Ltd. for suspected fund diversion and financial malfeasance.

An inquiry into the purported financial malfeasance and money diversion by Gensol Engineering Ltd.'s founders may be initiated by the Enforcement Directorate. According to them, the federal inquiry agency has also frozen a few lakhs more shares in Gensol belonging to an individual under investigation in a different case connected to the Mahadev betting app scandal.

The ED is reportedly examining the recent SEBI report that banned Anmol Singh Jaggi and Puneet Singh Jaggi, the promoter brothers of Gensol, from the securities market for a number of infractions in addition to charges that they embezzled loan money from their publicly traded business for their own benefit.

According to the SEBI report, the ED may launch an investigation under the anti-money laundering statute to examine the misappropriation of funds and losses suffered by Gensol's investors. Additionally, the agency will search for any foreign exchange legislation infractions that are being looked into under the Foreign Exchange Management Act.

A new few lakh shares of the firm that are purportedly connected to certain overseas portfolio investors were also frozen by the agency's Raipur office under the Prevention of Money Laundering Act. Following new searches in the Mahadev case, the ED said in a statement that it has frozen stocks, bonds, and demat accounts totaling Rs 573 crore.