East Bengal conceded a 2-3 defeat to Iraqi side Al-Shorta at Salt Lake stadium despite taking the lead twice through David Lalhlansanga.
Al-Shorta overturned the deficit with second-half goals from Hussein Al-Saedi and Kingsley Kuku, keeping the Iraqi side atop the group standings.
East Bengal struggled to capitalize on their 10 shots in the first half and remains with only one point from two tournament matches.