ED Raids 16–17 Premises in Three Cities Over MBECL Acquisition Probe

The FEMA probe seeks to trace cross‑border funds and determine whether the insolvency route was used to let persons barred under Section 29A regain indirect control.

Overview

ED teams carried out coordinated searches on Wednesday at about 16–17 premises linked to McNally Bharat Engineering Company Limited in Kolkata, Delhi and Bengaluru to seize records and examine accounts.
The action was launched under the Foreign Exchange Management Act to trace the source, movement and use of funds used to acquire control of MBECL.
Investigators are probing whether the Corporate Insolvency Resolution Process was manipulated to allow people who may be ineligible under Section 29A of the Insolvency and Bankruptcy Code to regain influence over the company.
Search-and-seizure activity during the raids focused on bank statements, corporate records and the residences of directors in south Kolkata’s Ballygunge and New Alipore, with forensic examination of accounts underway.
The probe remains in progress with no formal charges reported so far and the case could lead to criminal FEMA penalties, money‑laundering action and renewed scrutiny of how insolvency plans are vetted.