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ED Raids Kolkata Firm in FEMA Probe Over Insolvency Process
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News18•23-09-2026, 10:15
ED Raids Kolkata Firm in FEMA Probe Over Insolvency Process
- •The Enforcement Directorate conducted searches in three states as part of a FEMA investigation against McNally Bharat Engineering Company Limited (MBECL), a Kolkata-based engineering company.
- •Approximately 16-17 premises in Kolkata, Delhi, and Bengaluru linked to MBECL and entities connected with its acquisition were covered.
- •The investigation focuses on suspected FEMA contraventions and the source and movement of funds used in acquiring control of MBECL.
- •The ED is also examining if the insolvency resolution process was used to allow potentially ineligible persons under Section 29A of the IBC to regain indirect control of the company.
- •MBECL recently underwent the Corporate Insolvency Resolution Process (CIRP) through NCLT, with BTL EPC company's plan being approved.
Key Questions Answered
The Enforcement Directorate is investigating suspected FEMA contraventions, the source and movement of funds used to acquire control of MBECL, and whether the insolvency process was used to allow potentially ineligible persons to regain indirect control.
The searches are covering about 16 to 17 premises located across three states, specifically in Kolkata, Delhi, and Bengaluru.
McNally Bharat Engineering Company Limited recently underwent the Corporate Insolvency Resolution Process through the NCLT, where the resolution plan of BTL EPC company was approved.
