ED issues Provisional Attachment Order under PMLA; Rs. 25.08 Crore in two company bank accounts attached
ED issued a Provisional Attachment Order under PMLA on 25.09.2026, attaching Rs. 25.08 Crore in 2 company bank accounts, plus promoter shares — 6,98,275 (Shailesh Bhandari) and 6,59,500 (Mukesh Bhandari).
- Provisional Attachment Order Date
- 25th September, 2026
- Bank Accounts Attached (Company)
- Rs. 25.08 Crore in 2 bank accounts
- Promoter Shares Attached - Shailesh Bhandari
- 6,98,275 equity shares
- Promoter Shares Attached - Mukesh Bhandari
- 6,59,500 equity shares
- Earlier Freeze Amount
- Rs. 34.29 Crore in two company bank accounts
What happened
The Directorate of Enforcement (ED), Zonal Office Ahmedabad, issued a Provisional Attachment Order under Section 5(1) of the Prevention of Money-Laundering Act, 2002 on 25th September, 2026, attaching certain movable properties of the company and of two promoters.
What was attached
- Balances of Rs. 25.08 Crore lying in 2 bank accounts of the company.
- Free-hold equity shares of the company held by Mr. Shailesh Bhandari, Promoter & Executive Vice Chairman: 6,98,275 equity shares.
- Free-hold equity shares held by Mr. Mukesh Bhandari, Promoter & Ex-Chairman: 6,59,500 equity shares.
Share value has been taken from NSE last traded price as on the date of registration of the CBI FIR.
Earlier actions already disclosed
- Balances of Rs. 34.29 Crore frozen in two company bank accounts.
- Rs. 83.18 Lacs frozen in one bank account of Mr. Shailesh Bhandari.
- Fixed Deposit Receipt of Rs. 3.20 Crore provided to release a car from seizure.
Background of the case
PMLA proceedings stem from an FIR registered by CBI, BS&FB, Mumbai against the company and its directors on a Bank of India complaint in December 2021, alleging loss of Rs. 81.97 Crores to the bank. That figure is the difference between outstanding dues of Rs. 631.97 Crores and the assignment of the loan by Bank of India to Edelweiss Asset Reconstruction Company Limited on 30th June, 2014 for Rs. 550.00 Crores. The CBI FIR has been disclosed in the company's financial statements and annual reports since 2022.
Legal status
The company and Mr. Shailesh Bhandari shared a quashing petition against the CBI FIR before the Gujarat High Court in April 2024; notice was issued by order dated 26th April, 2024 and the matter is pending. The freezing of bank accounts has been challenged before the Gujarat High Court and the PMLA Appellate Tribunal, New Delhi, and quashing of the ECIR is sought before the Gujarat High Court. A complaint shared by ED under Section 44(1)(b) read with Section 45(1) of PMLA is pending before the Special Court for PMLA Cases at Ahmedabad, with notices issued under Section 233 of BNSS for hearing on cognizance.
What it means for investors
Funds in the attached accounts are not freely available to the company while the attachment stands, which affects liquidity. The share attachment relates to promoter-held shares, not company treasury. The company states it is in the process of seeking appropriate legal advice and will continue to update the exchanges.
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More numbers
- Bank balances attached on 25.09.2026Rs. 25.08 Crore
- Company bank accounts attached2 bank accounts
- Shares attached - Shailesh Bhandari6,98,275 equity shares
- Shares attached - Mukesh Bhandari6,59,500 equity shares
- Earlier frozen company balancesRs. 34.29 Crore
- Earlier frozen promoter account balanceRs. 83.18 Lacs
- FDR provided to release carRs. 3.20 Crore
- Alleged loss to Bank of IndiaRs. 81.97 Crores
- Outstanding duesRs. 631.97 Crores
- Loan assignment value to Edelweiss ARCRs. 550.00 Crores
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