Ahmedabad, October 1, 2026 (Yes Punjab News)
The Enforcement Directorate (ED) has provisionally attached movable assets worth Rs 43.65 crore belonging to Electrotherm (India) Limited (EIL) and its promoters in connection with an alleged bank fraud and money laundering case involving the diversion and siphoning of funds, the agency said on Thursday.
The attachment was carried out on September 25 by the ED’s Ahmedabad Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002. The attached assets include Rs 25.08 crore held in two bank accounts of the company with Yes Bank and 13,57,775 shares of Electrotherm held by its promoters, valued at Rs 18.57 crore.
The investigation was initiated following an FIR registered by the Central Bureau of Investigation’s (CBI) Bank Securities and Fraud Branch in Mumbai against EIL and its directors under provisions of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988, based on a complaint by the Bank of India.
According to the ED, the case concerns credit facilities availed by Electrotherm from the Bank of India between 2007 and 2013. The company’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 reported loss of Rs 81.97 crore to the bank.
The ED alleged that loans sanctioned for the company’s expansion were diverted soon after disbursement towards repayment of existing liabilities, contrary to the approved purpose of the funds.
The agency further stated that funds were transferred to various entities, from which large, round-sum amounts were allegedly withdrawn in cash shortly after receipt, either directly or through intermediary entities. Cash withdrawals amounting to crores of rupees were also recorded from the company’s bank accounts between 2007 and 2013, it said.
In January 2025, the ED conducted searches at the premises of the company, its directors and promoters. The searches resulted in the seizure or freezing of assets worth Rs 38.32 crore, which was subsequently confirmed by the PMLA Adjudicating Authority.
With the latest attachment, the total value of assets seized, frozen or attached in the case has reached Rs 81.97 crore, equivalent to the loss suffered by the Bank of India, according to the agency.
The ED said further investigation into the case is underway.
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