Electrotherm: ED attaches ₹25.08 crore under PMLA order

What Electrotherm disclosed to exchanges

Electrotherm (India) Limited said the Enforcement Directorate (ED) issued a provisional attachment order on September 25, 2026, freezing ₹25.08 crore held in the company’s bank accounts. The company disclosed the action through a regulatory filing to stock exchanges. The attachment was made under Section 5(1) of the Prevention of Money Laundering Act, 2002 (PMLA). Along with company bank balances, the order also covers equity shares held by promoters Shailesh Bhandari and Mukesh Bhandari.

The filing links the action to an earlier complaint by Bank of India. Electrotherm stated the matter is part of an ongoing legal and regulatory process, with multiple proceedings pending across forums. The disclosure adds to earlier reported actions that included searches and account freezes connected to the same broader dispute.

Details of the September 25, 2026 provisional attachment

According to the company, the ED’s provisional attachment order covers two main categories of assets. First, it freezes ₹25.08 crore in Electrotherm’s bank accounts. Second, it attaches promoter-held equity shares in the company.

The promoters whose shares were attached are Shailesh Bhandari and Mukesh Bhandari. The filing specified the number of shares attached for each promoter. This order is the latest in a series of measures tied to the same underlying allegation referenced by the company.

The Bank of India allegation and the ₹81.97 crore claim

Electrotherm’s filing said the attachment relates to an earlier Bank of India complaint that alleges a loss of ₹81.97 crore. The company described this amount as the difference between outstanding dues of ₹631.97 crore and a loan assignment value of ₹550.00 crore.

As disclosed, the loan assignment was transferred to Edelweiss Asset Reconstruction Company Limited in June 2014. The ₹81.97 crore figure is presented in the filing as the computed difference between these two disclosed amounts. The company’s update frames the ED action as connected to this chain of events.

What assets are covered in the attachment order

The filing included a clear break-up of the assets attached under the ED’s order. It includes company bank balances and promoter equity shares.

The two promoter share blocks total 13,57,775 shares, as reflected in the disclosed quantities.

Earlier freezes and the cumulative company-level impact

Electrotherm’s disclosures also refer to prior freezing actions. These included ₹34.29 crore frozen in company accounts and ₹0.83 crore (₹83.18 lakh) frozen in a promoter account, as referenced in the material shared.

Based on the company’s stated numbers, the cumulative frozen liquidity at the company level stands at ₹59.37 crore. This is the sum of the newly attached ₹25.08 crore and the previously frozen ₹34.29 crore. The company clarified that this cumulative figure excludes promoter-level freezes and also excludes any fixed deposit receipt (FDR) posted for asset release, as mentioned in the disclosure.

Legal proceedings and forums involved

Electrotherm said multiple matters are pending before courts and tribunals. A petition seeking quashing of the CBI FIR is pending before the Gujarat High Court, and notices were issued in April 2024. Separately, challenges against the freezing of bank accounts are pending before the Gujarat High Court and the PMLA Appellate Tribunal, New Delhi.

The company also disclosed that an ED complaint under Sections 44(1)(b) and 45(1) of the PMLA is pending hearing before the Special Court for PMLA Cases at Ahmedabad. In another update referenced in the provided material, Electrotherm said the ED filed a formal PMLA complaint against the company and promoters Shailesh Bhandari and Mukesh Bhandari in the Ahmedabad Special Court. These disclosures indicate that the matter is being contested across multiple legal channels.

Promoter share transfer disclosed earlier in September 2026

Separately from the attachment, the company disclosed that promoters transferred 80,000 equity shares through an off-market inter-se transfer by way of gift on September 10, 2026. The company stated this represented 0.63% of the total voting capital.

This disclosure is distinct from the ED attachment order, which specifically lists the attached quantities of promoter shares for Shailesh Bhandari and Mukesh Bhandari.

Other regulatory and corporate updates mentioned alongside the ED matter

The provided material also references other company updates and headlines, including an outcome of a board meeting held on August 26, 2026, and AGM-related notices for a meeting scheduled on September 28, 2026 via VC/OAVM. It also mentions the appointment of Mr. Rajesh Bhalchandra Patel (DIN: 02735027) as an Additional Director in the category of Non-Executive Non-Independent Director.

In addition, the text includes two separate tax-demand references: one noting a demand of about ₹3.96 crore for assessment year 2019-20 with a split between net tax and interest, and another noting a tax demand of ₹72.69 crore (₹35.52 crore net tax plus ₹37.17 crore interest) with an intention to file an appeal.

Market snapshot provided with the disclosures

Alongside the updates, the stock price snapshot shown in the provided material indicates Electrotherm (India) at ₹873.35, down ₹14.35 or 1.62%. The disclosure itself focuses on legal and regulatory developments, while the price move provides a reference point for how the market was quoting the stock around the time these updates were circulating.

Why this development matters for investors to track

For shareholders, the key measurable impact disclosed is the freeze on company-level bank balances totaling ₹59.37 crore when combining the latest attachment with prior freezes. The attachment of promoter shares is also a material governance and legal development, given it directly involves key promoter holdings.

The next signposts in the matter are procedural: pending hearings at the Gujarat High Court, the PMLA Appellate Tribunal in New Delhi, and the Special Court for PMLA Cases at Ahmedabad. Any further disclosures are likely to be linked to orders from these forums or updates on the ED complaint proceedings.

Conclusion

Electrotherm’s September 25, 2026 disclosure confirms an ED provisional attachment freezing ₹25.08 crore and attaching promoter shareholdings, tied by the company to a Bank of India complaint alleging an ₹81.97 crore loss linked to a 2014 loan assignment. With multiple challenges and hearings pending across courts and tribunals, investors will be watching for the next regulatory filing tied to judicial outcomes or changes in the company’s frozen liquidity position.