New Delhi, 23 September (H.S.): The Enforcement Directorate (ED) has conducted searches at 16 locations across Kolkata, Delhi and Bengaluru in connection with the acquisition of McNally Bharat Engineering Company Limited (MBECL), under the provisions of the Foreign Exchange Management Act (FEMA), 1999. The agency is investigating the source and movement of funds used for the acquisition, along with suspected violations of foreign exchange laws.

According to the ED, the searches are being carried out at premises linked to individuals and entities associated with the acquisition of MBECL. These include premises connected with Sanjay Pasari, Rajiv Pasari, Ravi Todi and Sudhir Satnalivala, as well as those of BTL EPC Limited, Mandal Vyapar Private Limited, Trolex (India) Private Limited, Semfil Enterprises Limited and Mahabaleshwar Merchants Private Limited.

The investigating agency is examining the actual source of funds used to acquire control of MBECL and the manner in which the funds were routed through various channels. The ED is also scrutinising transactions and financial activities that may have involved violations of foreign exchange regulations.

According to the ED, another aspect of the investigation relates to Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016. The agency is examining whether the corporate insolvency resolution process was used to indirectly enable individuals who may have been disqualified under Section 29A from acquiring control of the company to regain such control.

The ED said search and investigation proceedings in the matter are continuing.

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Hindusthan Samachar / Jun Sarkar