The Enforcement Directorate (ED) has launched searches at 16 premises across Kolkata, Delhi, and Bengaluru connected to McNally Bharat Engineering Company Limited (MBECL).
Officials confirmed the raids are being carried out under the Foreign Exchange Management Act, 1999 (FEMA), focusing on suspected contraventions and the source and movement of funds used in acquiring control of the engineering firm.
Investigators are also examining whether the insolvency resolution process was misused to allow individuals potentially ineligible under Section 29A of the Insolvency and Bankruptcy Code, 2016 to indirectly regain control of the company.
The searches highlight ED’s growing scrutiny of corporate transactions and insolvency proceedings, with authorities determined to crack down on financial irregularities and regulatory violations in India’s engineering and infrastructure sector.
