ED Attaches Properties Worth ₹43.65 Crore In Electrotherm India Money-Laundering Case
The Enforcement Directorate (ED), Ahmedabad Zonal Office, has provisionally attached movable properties worth ₹43.65 crore in connection with a money-laundering investigation involving M/s Electrotherm (India) Ltd. (EIL).
The attachment was made on September 25, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The attached assets include ₹25.08 crore lying in two bank accounts of EIL with Yes Bank, along with 13,57,775 shares of the company held by its promoters, valued at approximately ₹18.57 crore.
The ED investigation was initiated following an FIR registered by the CBI’s Bank Securities and Financial Fraud Branch (BS&FB), Mumbai, against EIL and its directors under various provisions of the IPC, 1860, and the Prevention of Corruption Act, 1988. The case was registered based on a complaint filed by the Bank of India.
The allegations relate to the diversion and siphoning of funds obtained through credit facilities from the bank between 2007 and 2013.
According to the investigation, EIL’s outstanding dues to the Bank of India stood at around ₹631.97 crore. The account was subsequently assigned to Edelweiss ARC for ₹550 crore, resulting in an alleged loss of ₹81.97 crore to the bank.
The ED investigation found that loans sanctioned by the Bank of India for the company’s expansion were allegedly diverted soon after being disbursed. Instead of being used for the approved purpose, the funds were reportedly used to settle existing liabilities.
Investigators also found that EIL transferred money to several entities, following which the funds were allegedly withdrawn in cash in large, round-sum amounts. In some cases, the money was reportedly routed through multiple entities before being withdrawn.
The investigation further revealed that cash amounting to several crores of rupees was withdrawn from EIL’s bank accounts during the period between 2007 and 2013.
Earlier, the ED had conducted searches at premises linked to the company and its directors/promoters in January 2025 under the PMLA. The searches resulted in the seizure and freezing of assets worth approximately ₹38.32 crore.
The earlier action was subsequently confirmed by the Adjudicating Authority under the PMLA.
With the latest attachment of ₹43.65 crore, the total value of assets seized, frozen or attached in the case has now reached approximately ₹81.97 crore.
Further investigation into the matter is underway.
News Source : Information for this article was gathered from a variety of reliable news outlets.
