Ahmedabad, January 31, 2025
Electrotherm (India) Ltd. (NSE: ELECTHERM | BSE: 526608) has provided an update regarding the search conducted by the Directorate of Enforcement (ED), Zonal Office, Ahmedabad, on January 10, 2025. The company and its Executive Vice Chairman, Mr. Shailesh Bhandari, had challenged the ED’s actions before the Hon’ble Gujarat High Court through separate writ petitions.
Key Court Decision on Bank Account Operations
In an interim order dated January 29, 2025, uploaded on January 30, 2025, the Hon’ble Gujarat High Court has provided partial relief to the company and its executive:
- Company’s Bank Accounts: The court permitted Electrotherm (India) Ltd. to operate its bank accounts for the amount exceeding the sum frozen by the ED, which is approximately ₹33.67 crore.
- Executive Vice Chairman’s Bank Accounts: The court also allowed Mr. Shailesh Bhandari to operate his bank accounts for amounts beyond those frozen, totaling ₹83.18 lakh.
These two writ petitions remain pending before the Hon’ble Gujarat High Court for further hearings.
Regulatory Implications
This update follows the company's previous disclosure on January 17, 2025, under Regulation 30, highlighting its legal challenge against the ED's actions. While the court has granted interim relief, the case's final outcome remains to be seen.
Next Steps
Electrotherm has assured stakeholders that it is actively addressing the matter and complying with legal proceedings. Investors are advised to monitor further regulatory filings for additional developments.
