Electrotherm (India) Limited has informed the Exchange about Action(s) taken or orders passed
ELECTHERM · price
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The Enforcement Directorate (ED) had earlier frozen Rs. 34.29 Crores across two bank accounts of Electrotherm (India) and Rs. 83.18 Lakhs in an account of its Executive Vice Chairman Mr. Shailesh Bhandari, and seized one car. On 17th June 2025, the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA), New Delhi, allowed the ED's application to retain these frozen assets and the seized vehicle for further investigation. The underlying matter stems from a CBI FIR registered in December 2021, based on a Bank of India complaint alleging a loss of Rs. 81.97 Crores to the bank. The Company and its Vice Chairman have filed quashing petitions before the Gujarat High Court, which are pending. The Gujarat High Court had on 29th January 2025 allowed the Company to operate its bank accounts beyond the frozen amount.
This is a negative development for shareholders as the PMLA authority has upheld the freezing of Rs. 34.29 Crores of company funds and the seized vehicle remains impounded, which restricts financial flexibility. However, the company can still operate bank accounts above the frozen threshold per the Gujarat High Court's interim order, and the quashing petitions are pending, leaving room for relief in future hearings.