The Directorate of Enforcement (ED) has filed a formal complaint under the Prevention of Money Laundering Act, 2002 (PMLA) against electrotherm and two of its promoters, Shailesh Bhandari and Mukesh Bhandari. The ED submitted the complaint to the Special Court for PMLA Cases at Ahmedabad, marking a significant escalation in the regulatory probe that began with searches and account freezes earlier this year.

The complaint was filed under Section 44(1)(b) read with Section 45(1) of the PMLA. According to the disclosure made to the stock exchanges on August 4, 2026, the Ahmedabad court provided copies of the complaint to Electrotherm and Shailesh Bhandari on August 3, 2026. This action follows notices issued under Section 223 of the Bharatiya Nagarik Suraksha Sanhita 2023 (BNSS) for hearing on cognizance.

This development is part of an ongoing investigation triggered by a complaint from Bank of India. Previous disclosures dated January 17, 2025, January 31, 2025, June 18, 2025, and February 5, 2026, detailed the initial search conducted by the ED’s Zonal Office in Ahmedabad. Those actions resulted in the freezing of bank accounts belonging to both the company and Shailesh Bhandari.

Legal Challenges and Account Operations

Electrotherm and Shailesh Bhandari have actively contested the ED’s measures through judicial channels. They challenged the freezing of bank accounts before the Gujarat High Court and the PMLA Appellate Tribunal in New Delhi. Additionally, they sought the quashing of the Enforcement Case Information Report (ECIR) registered by the ED before the Gujarat High Court. As of the latest update, these matters remain pending for further hearings.

Despite the frozen status of certain accounts, the company secured permission to operate its bank accounts based on orders passed by the Hon’ble Gujarat High Court. This interim relief allowed business continuity while the legal proceedings continue. Furthermore, a seized car was released upon the submission of a Fixed Deposit Receipt (FDR) in favor of the ED.

Key Entities and Regulatory References

The filing underscores the serious nature of the allegations, as the ED has moved from investigation to prosecution by lodging a formal complaint before the special court. The outcome of the pending appeals regarding the ECIR and account freezes will likely influence the trajectory of the main PMLA trial.

Electrotherm (India) Ltd has appointed Raj Kumar Bansal as a Non-Executive Independent Director and Harish Mukati as Whole Time Director & Chief Executive Officer to strengthen its leadership. These appointments, effective from July 20, 2026, are aimed at bolstering the company's governance and operational capabilities within the engineering and steel sectors.

The Board of Directors approved the appointment of Mr. Raj Kumar Bansal (DIN: 00122506) for a term of five consecutive years, concluding on July 19, 2031. He will hold office as an Additional Director until the date of the next Annual General Meeting. Aged 67, Mr. Bansal is a rank-holder Chartered Accountant with approximately 40 years of experience in the banking and Asset Reconstruction Company (ARC) industry. His previous roles include Managing Director and CEO of Edelweiss Asset Reconstruction Ltd. and President of Edelweiss Financial Services Limited.

Simultaneously, the Board appointed Mr. Harish Mukati (DIN: 03214401) as an Additional Director and Whole Time Director & Chief Executive Officer. His tenure as Whole Time Director is set for three years, from July 20, 2026, to July 19, 2029, subject to the approval of the company's members. Mr. Mukati, aged 49, holds a Bachelor of Engineering in Civil & Structural Engineering from NIT Bhopal and has completed Executive Management Studies from IIM Ahmedabad. He brings over 25 years of experience in strategic planning and business operations, having served as the CEO of the Steel Division since November 14, 2024.

Director Profiles

The following table summarizes the key details of the new appointments:

Regulatory Disclosures

The company confirmed that neither appointee is related to the existing directors of the company. Furthermore, both Mr. Bansal and Mr. Mukati are not debarred from accessing the capital market or restrained from holding the position of director in any listed entity by the Securities and Exchange Board of India (SEBI) or any other authority. The disclosures were made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.