Electrotherm (India) Ltd Discloses About ED Investigation and Court Orders

Electrotherm (India) Limited has recently made a disclosure to the stock exchanges, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) about an investigation conducted by the Enforcement Directorate (ED) and frozen Rs 34.29 crores from the company’s two bank accounts and frozen Rs 83.18 lakhs from a personal account of Mr. Shailesh Bhandari, the company’s Executive Vice Chairman. Additionally, the company has also shared that ED has seized two cars (the other car of a third party has been released as of now). The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This investigation was conducted after the Bank of India filed a complaint against Electrotherm (India) Ltd. and its directors, where the bank claimed that the company had caused a loss of Rs 81.97 Crores to the bank with the CBI.

This loss was caused due to the difference between the amount of outstanding dues of Rs. 631.97 Crore and the assignment of the loan by the Bank of India to Edelweiss Asset Reconstruction Company Limited on 30th June, 2014, for Rs. 550.00 Crores.

After that, the Enforcement Directorate (ED) filed an application under Section 17(4) of the Prevention of Money Laundering Act (PMLA), 2002, with the Adjudicating Authority in New Delhi. The authority allowed the ED to retain the seized car and the frozen bank accounts for investigation. This FIR by the CBI has already been shown in the company’s financial reports since 2022.

Electrotherm and Mr. Shailesh Bhandari filed petitions in the Gujarat High Court to cancel the CBI FIR and the ED’s Enforcement Case Information Report (ECIR). The Gujarat High Court issued notices in both cases on March 28, 2025, which are still pending.

This has affected the company’s financial operations, and the exact financial impact depends on the outcome of the ongoing legal proceedings.