Economic Fraud
ED Freezes Bank Accounts Worth Over Rs 33 Crore in Electrotherm Fraud Case
The Enforcement Directorate (ED) has seized two Mercedes cars and frozen 37 bank accounts with a combined balance of Rs 33.67 crore in connection with a bank fraud case involving Ahmedabad-based Electrotherm India Limited and its directors. The operations were conducted by the ED’s Ahmedabad Zonal Office on January 10 and 11, under the Prevention of Money Laundering Act (PMLA).
Investigation Details
According to a statement released on Thursday, the ED’s investigation stems from an FIR registered by the CBI’s Bank Securities & Fraud Branch (BS&FB), Mumbai. The FIR, filed based on a complaint from the Bank of India, alleged a wrongful loss of Rs 631.97 crore caused by Electrotherm India Limited and its directors, including Mukesh Bhandari and Shailesh Bhandari.
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During the probe, the ED identified proceeds of crime amounting to Rs 81.97 crore as of June 30, 2014. The agency stated that Mukesh and Shailesh Bhandari are also under investigation in two additional bank fraud cases involving Electrotherm India Limited and its group companies.
Previous Allegations and Actions
In one of these cases, Electrotherm India Limited reportedly defaulted on loan repayments of Rs 388.23 crore borrowed from the Central Bank of India. The ED had earlier attached assets worth Rs 179 crore in connection with this case and filed a prosecution complaint in the trial court.
The ED emphasized that further investigations into all the cases are ongoing. The agency continues to take legal and enforcement measures to recover defrauded amounts and hold the accused accountable.
