Electrotherm India assets worth Rs 43.65 crore attached in fraud case

The Enforcement Directorate (ED) has provisionally attached movable assets worth Rs 43.65 crore belonging to Electrotherm (India) Limited (EIL) and its promoters. The action, taken by the ED’s Ahmedabad Zonal Office under the Prevention of Money Laundering Act, 2002, involves an investigation into the alleged diversion and siphoning of bank funds.

The attached assets consist of Rs 25.08 crore held in two Yes Bank accounts and 1,357,775 company shares held by promoters, valued at Rs 18.57 crore. The probe follows a Central Bureau of Investigation (CBI) FIR based on a complaint from the Bank of India regarding credit facilities utilized by EIL between 2007 and 2013.

Investigators allege that loans intended for company expansion were diverted to repay existing liabilities. The ED further stated that funds were transferred to various entities and subsequently withdrawn in large, round-sum cash amounts. The company’s outstanding dues reached Rs 631.97 crore, and the subsequent assignment of the account to Edelweiss ARC for Rs 550 crore resulted in a loss of Rs 81.97 crore to the bank.