KOLKATA: The Enforcement Directorate on Wednesday conducted searches at around 16-17 premises across Kolkata, Delhi and Bengaluru as part of a FEMA investigation into Kolkata-based engineering firm McNally Bharat Engineering Company Limited (MBECL), focusing on the flow of funds involved in its recent acquisition and possible violations linked to the company’s insolvency resolution process.
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 plan of BTLEPC company was approved.
A comment from the entities on whom the searches were being conducted could not be obtained immediately.
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 control of the company indirectly, they said.
(With Inputs from PTI)