ED Puts the Brakes on Electrotherm—Bank Accounts and Benzes Seized

Image Source: The420.in

The Enforcement Directorate (ED) has got the judicial go-ahead to retain two luxury vehicles and freeze 37 bank accounts belonging to Electrotherm (India) Ltd as part of its ongoing investigation into a massive bank fraud case under the Prevention of Money Laundering Act (PMLA), 2002.

The assets—two Mercedes-Benz cars and ₹33.67 crore in 37 frozen accounts—were froze as part of simultaneous search operations on January 10–11, 2025, in Ahmedabad and Gandhinagar. The ED probe is based on a CBI FIR filed by the Bank of India alleging Electrotherm and its directors caused a wrongful loss of ₹631.97 crore to the lender.

Key Developments:

Assets Frozen: 2 luxury cars + ₹33.67 crore in frozen accounts

Accused: Directors Mukesh and Shailesh Bhandari of Electrotherm India Ltd and others
Charges: Faulty loans, defaulted payments, and misappropriation of funds
Proceeds of Crime: Amounted to ₹81.97 crore as of June 2014
Previous Action: ED had already attached assets worth ₹179 crore in a similar case against Central Bank of India

The ED added that the accused are also under investigation in two more bank fraud cases against Electrotherm and its group companies. The court ruling permitting the agency to retain the assets seized during the raids gave the agency a strong hold as it continues to track the money trail and build its case for prosecution.

Sources: Moneylife, ED Official Press Release, Vibes of India