The Enforcement Directorate (ED) reportedly carried out search operations at approximately 16–17 locations across Kolkata, Delhi and Bengaluru on Wednesday as part of an investigation under the Foreign Exchange Management Act (FEMA) involving McNally Bharat Engineering Company Limited (MBECL).
According to officials, the investigation focuses on the source and movement of funds associated with the recent acquisition of control over the Kolkata-based engineering company. The agency is examining suspected FEMA violations and financial transactions connected with the company’s insolvency resolution process.
MBECL recently underwent the Corporate Insolvency Resolution Process (CIRP) before the National Company Law Tribunal (NCLT), with a resolution plan submitted by BTLEPC receiving approval.
The ED is also examining whether the insolvency resolution process may have enabled individuals potentially disqualified under Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016, to indirectly regain control of the company.
At the time of reporting, responses from the entities whose premises were searched were not immediately available.CASansaar