The Enforcement Directorate’s Kolkata office is conducting searches at 16 premises across Kolkata, Delhi and Bengaluru linked to engineering firm McNally Bharat Engineering Company Limited (MBECL). The agency said that the search is being conducted under the Foreign Exchange Management Act, 1999 (FEMA).
The investigation concerns suspected FEMA contraventions and the source and movement of funds used in acquiring control of MBECL. ED is also examining whether the insolvency resolution process was used to enable persons potentially ineligible under Section 29A of the Insolvency and Bankruptcy Code, 2016, to regain control of the company indirectly.
