ED Investigation: Vikas EcoTech provides clarification related to an old export–import case

SYNOPSIS: Vikas EcoTech clarified it has no link to a decade-old export–import probe involving unrelated parties, confirmed full cooperation with authorities, and said the matter has no impact on operations or finances.

Shares of a company involved in the business of specialty polymers & specialty additives, and chemicals for plastics & rubber industries, are in focus on Tuesday, after the company provided a clarification related to the Enforcement Directorate (ED) investigation of a decade-old case.

At 11:19 a.m., shares of Vikas EcoTech Limited were trading in the green at Rs. 1.72 on BSE, up by around 2 percent, compared to its previous closing price of Rs. 1.69, with a market cap of Rs. 304 crores. The stock has delivered negative returns of around 46 percent in one year, but has gained by over 8 percent in the last one month.

What’s the News:

On 12th November 2025, officials from the Enforcement Directorate (ED) visited Vikas EcoTech’s office and the residence of a promoter. The company said it fully cooperated with the authorities, and the proceedings concluded without any adverse developments.

On 13th November, the company stated that its name had appeared in a broader inquiry related to decade-old export–import transactions involving unrelated third parties, with whom it has had no business dealings or underlying interests.

The company said its inclusion was reportedly based on questionable inputs. A stay in the matter had earlier been granted by the Hon’ble High Court of Gujarat in 2023, and in line with the Court’s directions, Vikas EcoTech stated it would approach the appropriate adjudicating authority.

In a subsequent disclosure filed with stock exchanges on 29th December, Vikas EcoTech Limited reiterated its position amid media reports linking the company and/or its promoters to an ED investigation. The company clarified that the probe relates solely to entities and individuals with whom it has had no dealings, interest or direct/indirect association, and said any reference to it appears to have risen from unverified and manipulated documents.

To establish the correct factual position, Vikas EcoTech said it has independently obtained verified ownership and beneficial interest records from government-backed and credible independent agencies. According to the company, these records confirm that neither it nor its promoters, directors, employees, or associates has any connection with the entities under investigation.

Additionally, in compliance with the High Court’s directions, where an earlier stay was vacated with liberty to approach the appropriate forum, the company and promoter group have initiated legal remedies. These include filing proceedings before the Hon’ble Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, seeking a declaration of non-involvement, and initiating civil and criminal proceedings in the United Arab Emirates against individuals allegedly responsible for the misleading documents.

The company said the clarification was issued voluntarily in the interest of transparency and to address market speculation. It added that these developments have no impact on its operations, financial position, or strategic outlook, and advised stakeholders to rely only on disclosures made to stock exchanges rather than unverified reports or rumours.

Vikas EcoTech reported a decline in revenue from operations, experiencing a year-on-year decrease of over 27 percent, from Rs. 89.23 crores in Q2 FY25 to Rs. 64.72 crores in Q2 FY26. Likewise, its net profit decreased during the same period from Rs. 2.85 crores to Rs. 1.75 crores, representing a fall of nearly 39 percent YoY.

Vikas Ecotech Limited is primarily engaged in the business of manufacturing specialty chemicals, with a focus on specialty chemical additives and specialty polymer compounds. Its products serve multiple industries, including agriculture and infrastructure, packaging, organic and inorganic chemicals, electrical, FMCG, footwear, pharmaceuticals, automotive, medical devices and components and other consumer goods.

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