Electrotherm (India) Limited disclosed that the Enforcement Directorate (ED) issued a provisional attachment order on September 25, 2026, freezing ₹25.08 crore in company bank accounts. The action, taken under Section 5(1) of the Prevention of Money Laundering Act, 2002 (PMLA), also targets equity shares held by promoters Shailesh Bhandari and Mukesh Bhandari.

The regulatory filing to stock exchanges detailed that the attachment relates to an earlier complaint by Bank of India regarding a loss of ₹81.97 crore. This amount represents the difference between outstanding dues of ₹631.97 crore and the loan assignment value of ₹550.00 crore transferred to Edelweiss Asset Reconstruction Company Limited in June 2014.

Scope of Attachment Order

The ED’s order extends beyond corporate balances to include personal assets of key management personnel. The specific attachments are outlined below:

Note: Share valuation is based on the NSE last trading price as of the date the CBI registered the FIR.

Cumulative Financial Impact

This latest directive adds to previously frozen assets. The company had already reported the freezing of ₹34.29 crore in its bank accounts and ₹83.18 lakh in an account belonging to Executive Vice Chairman Shailesh Bhandari. Additionally, the company submitted a Fixed Deposit Receipt (FDR) worth ₹3.20 crore to secure the release of a seized vehicle.

Legal Proceedings and Challenges

Electrotherm and Shailesh Bhandari have challenged these actions before multiple judicial forums:

• A petition for quashing the CBI FIR is pending before the Hon'ble Gujarat High Court, with notices issued in April 2024.
• Challenges against the freezing of bank accounts are pending before the Hon'ble Gujarat High Court and the PMLA Appellate Tribunal, New Delhi.
• A complaint filed by the ED under Sections 44(1)(b) and 45(1) of the PMLA is currently pending hearing before the Special Court for PMLA Cases at Ahmedabad.

What the Numbers Show

The cumulative frozen liquidity for the company stands at ₹59.37 crore when combining the newly attached ₹25.08 crore with the previously frozen ₹34.29 crore. This figure excludes the promoter-level freezes and the FDR posted for asset release. The concentration of legal risk is evident as the attached shareholding by both promoters totals over 13.5 lakh shares, potentially impacting their voting power or liquidity if the attachment is not lifted during ongoing hearings.

Electrotherm (India) Ltd promoters transferred 80,000 equity shares, representing 0.63% of the total voting capital, through an off-market inter-se transfer by way of gift on September 10, 2026.

The transaction was disclosed under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The shares were transferred from Mr. Bhandari Rakesh to Mr. Suraj Shailesh Bhandari, both members of the promoter group.

Transaction Details

The transfer involved no change in the aggregate shareholding of the promoter and promoter group, as it was an internal reallocation within the group. The total diluted share/voting capital of the company remained at ₹12,74,28,140, divided into 1,27,42,814 equity shares of ₹10 each.

What the Numbers Show

The aggregate promoter and promoter group holding remains stable at 29.87% post-transfer. While the individual holdings shifted, with Mr. Suraj Shailesh Bhandari increasing his stake to 1.26% and Mr. Bhandari Rakesh reducing his to 2.73%, the combined control structure is unchanged. Additionally, the disclosure notes that 3,00,000 equity shares held by the promoter and promoter group remain under encumbrance (pledge).

This filing serves as a regulatory compliance measure for the internal restructuring of promoter stakes rather than a change in external ownership or control dynamics.