ED raids entities linked to McNally Bharat IBC case
The Enforcement Directorate (ED) on Wednesday conducted searches in three states as part of a FEMA investigation against a Kolkata-based engineering company that recently underwent insolvency, officials said.
They said about 16-17 premises in Kolkata, Delhi and Bengaluru linked to McNally Bharat Engineering Company Limited (MBECL) and persons and entities connected with its acquisition are being covered.
The searches were initiated under the Foreign Exchange Management Act (FEMA), they said.
The company recently underwent the Corporate Insolvency Resolution Process (CIRP) through the National Company Law Tribunal (NCLT), and the BTL EPC company’s plan was approved.
The ED could not immediately obtain comments from the entities on whom the searches were conducted.
Officials said the ED is investigating suspected FEMA contraventions and the source and movement of funds used in acquiring control of MBECL.
The agency is also examining whether the insolvency resolution process was used to enable persons “potentially ineligible” under Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016, to regain indirect control of the company, they said.
