Gensol Engineering Share Price Extends Five-Day Losing Streak Amid Betting App, Promoter Fraud Controversy

Share price of Gensol Engineering Ltd. continued its downward spiral that began in wake of the alleged promoter fraud case. In an exchange filing on Thursday, the company's promoters stated they had no association with the Mahadev Book app case.

"We reiterate that the promoters of Gensol Engineering have no association with the Mahadev Book app case or the alleged financial transactions cited therein," stated the disclosure.

Neither the company, nor any of its promoters, have received any communication from the Enforcement Directorate with regard to the issue at hand, the disclosure further stated.

The company's stock has been stuck in a 5% lower circuit with the share price slipping 18.56% since news of the company's alleged promoter fraud broke, with SEBI barring both company and the accused from the securities markets.

The Mahadev Online gaming and betting app is an umbrella syndicate arranging online platforms to enable illegal betting websites to enroll new users, create user IDs and launder money through a layered web of benami bank accounts, according to the ED.

The ED found that the "proceeds of crime" generated by the betting platform and its linked syndicates were moved out of the country and later invested in the Indian stock markets in the name of foreign portfolio investments. The ED said it had seized securities, bonds and demat accounts worth Rs 573 crore after it conducted a fresh round of searches in the Mahadev online betting app-linked money laundering case last week.

The bourses had sought a clarification from the company regarding a potential link between Gensol and the app under question, prompted by a news item.

Gensol has come under the regulatory scanner for alleged fund diversions and governance lapses, with regulator SEBI barring brothers Anmol Singh Jaggi and Puneet Jaggi from the securities market for various violations and prohibiting them from holding any key managerial positions within the company, effectively removing them from their leadership roles.

The scrip has been locked in the 5% lower circuit for the sixth day at Rs 94.91 apiece. This compares to a 0.23% decline in the NSE Nifty 50 Index.

It has fallen 86.83% on a year-to-date basis. Total traded volume so far in the day stood at 0.09 times its 30-day average. The relative strength index was at 40.72.

No analysts currently track the stock, as per Bloomberg data.