ED Ahmedabad attaches Rs 43.65 crore assets of Electrotherm India in PMLA case

Ahmedabad: The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has provisionally attached movable properties worth Rs 43.65 crore in the case of Electrotherm (India) Ltd (EIL) under the Prevention of Money Laundering Act (PMLA), 2002.

The attachment, made on September 25, 2026, includes Rs 25.08 crore lying in two bank accounts of EIL with Yes Bank and 13,57,775 shares of the company held by its promoters, valued at Rs 18.57 crore.

The ED investigation was initiated based on an FIR registered by the CBI’s Bank Securities and Fraud Branch (BS&FB), Mumbai, against EIL and its directors under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988. The case was registered following a complaint by the Bank of India.

According to the investigation, the accused allegedly diverted and siphoned off funds from credit facilities availed from the bank between 2007 and 2013. EIL’s outstanding dues stood at Rs 631.97 crore, while the account was subsequently assigned to Edelweiss Asset Reconstruction Company (ARC) for Rs 550 crore, resulting in a loss of Rs 81.97 crore to the bank.

The ED said its investigation found that loans disbursed by the Bank of India to EIL for expansion were allegedly diverted immediately after disbursement towards repayment of existing liabilities, contrary to the sanctioned purpose of the loans.

The agency further found that EIL transferred funds to various entities, from whose bank accounts the money was allegedly withdrawn in cash in round-sum amounts shortly after receipt. In some cases, the funds were routed through other entities before being withdrawn. The investigation found that cash running into crores of rupees was withdrawn from EIL’s bank accounts between 2007 and 2013.

Earlier, the ED had conducted searches at the premises of EIL, its directors and promoters under the PMLA in January 2025. The searches resulted in the seizure or freezing of assets worth Rs 38.32 crore, which was subsequently confirmed by the Adjudicating Authority under the PMLA.

With the latest attachment, the total value of assets seized, frozen or attached in the case has reached Rs 81.97 crore.

Further investigation is underway. DeshGujarat