Electrotherm (India) Limited has disclosed that the Directorate of Enforcement (ED), Zonal Office in Ahmedabad, conducted searches at its corporate office, factory, and the residence of its Executive Vice Chairman and Promoter, Mr. Shailesh Bhandari, on January 10, 2025. The ED’s actions, conducted under the Prevention of Money Laundering Act, 2002, included freezing 39 company bank accounts holding approximately ₹33 crore and two personal bank accounts of Mr. Bhandari.
The investigation stems from a CBI FIR registered in December 2021 concerning a complaint by the Bank of India, alleging a financial loss of ₹81.97 crore caused by Electrotherm. The company has filed a petition challenging the FIR in the Gujarat High Court, which is pending a hearing. Electrotherm is seeking legal advice to address these actions and has committed to providing updates to stock exchanges as required.
This development has implications for Electrotherm’s financial and operational activities. The company has challenged ED’s actions and continues to address the ongoing investigation.
