New Delhi: On Wednesday, the Enforcement Directorate (ED) executed coordinated raids at roughly 16‑17 locations across Kolkata, Delhi and Bengaluru, targeting alleged breaches of the Foreign Exchange Management Act (FEMA) linked to McNally Bharat Engineering Company Ltd (MBECL).
Premises linked to the firm and its acquisition network
The search warrants covered properties owned or operated by MBECL, individuals involved in its recent takeover, and a range of associated entities. The operation follows the company’s entry into the Corporate Insolvency Resolution Process (CIRP) before the National Company Law Tribunal (NCLT), where the resolution plan submitted by BTL EPC received approval.
Scrutinising the money trail and the insolvency route
ED investigators are tracing the origin of capital deployed to secure control of MBECL, while scrutinising a web of financial transactions that surround the firm. Authorities are also examining whether the insolvency mechanism was leveraged to enable parties, who would otherwise be barred under Section 29A of the Insolvency and Bankruptcy Code (IBC) 2016, to indirectly regain influence over the company.
Seized documents under review
Documents, ledgers and other records confiscated during the raids are currently being analysed as part of the broader enquiry. Neither the individuals nor the entities whose premises were searched have issued any public response so far.
"The focus is on uncovering any financial conduit that may have been used to sidestep statutory restrictions on ownership," an ED spokesperson said.
