New Delhi: On Wednesday, the Enforcement Directorate (ED) executed coordinated raids at approximately 16‑17 locations spread across Kolkata, Delhi and Bengaluru, targeting entities associated with McNally Bharat Engineering Company Ltd (MBECL) as part of a broader FEMA inquiry.
The searches focused on premises tied to the company itself, individuals involved in its takeover, and ancillary firms that may have facilitated the alleged contraventions. The operation follows MBECL’s recent entry into the Corporate Insolvency Resolution Process (CIRP) before the National Company Law Tribunal (NCLT), where the resolution plan advanced by BTL EPC received approval.
Investigators are now tracing the origin of capital used to acquire a controlling stake in MBECL, alongside scrutinising a series of financial transactions linked to the firm. A key question under review is whether the insolvency framework was exploited to enable persons, otherwise barred under Section 29A of the Insolvency and Bankruptcy Code (IBC) 2016, to regain indirect control of the company.
Materials seized—including documents, ledgers and electronic records—are being analysed to piece together the financial narrative. To date, none of the parties whose premises were searched have issued a public response.
