ED Raids Rajesh Exports over Rs 3,000 Crore Suspicious Transactions, Offshore Diversion Probe
Investigators are examining suspected benami share trades, a 40% gold stock gap and more than $20 million in possible fund outflows.
- On Tuesday, The Enforcement Directorate searched nine premises in Bengaluru and Mumbai linked to Rajesh Exports Ltd as part of an investigation into alleged financial irregularities.
- Days earlier, the Securities and Exchange Board of India issued an interim order barring REL and promoter Rajesh Mehta from trading, accusing the company of revenue inflation between FY21 and FY25.
- Investigators found evidence of share transactions routed through alleged 'benamidars' siphoning more than $20 million, while physical gold stock was discovered nearly 40% lower than amounts recorded in company books.
- Denying the allegations, Rajesh Exports claimed the regulator confused revenue figures with EBITDA numbers of its Swiss subsidiary Valcambi and said it is cooperating with the probe.
- Officials are also examining outward direct investment of over Rs 1,000 crore in African gold mines and the adjustment of nearly Rs 3,000 crore in trade receivables against foreign entities with 'dubious credentials'.
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ED raids Rajesh Exports over Rs 3,000 crore suspicious transactions, offshore diversion probe
The Enforcement Directorate conducted searches at Rajesh Exports Ltd's premises in Bengaluru and Mumbai over alleged financial irregularities involving suspicious transactions and proxy shareholding. The probe has flagged discrepancies in gold stock, offshore fund diversion, and questionable trade adjustments worth around Rs 3,000 crore, officials said.
ED raids Rajesh Exports' offices in Mumbai, Bengaluru over forex 'violations'
The ED searched nine Rajesh Exports-linked locations in Bengaluru and Mumbai over alleged financial irregularities. The raids flagged suspected benami share deals, gold stock mismatches and unexplained overseas investments.
ED searches Rajesh Exports premises over ₹3,000-cr dubious deals, gold mismatch
The Bengaluru-headquartered jeweller has been under scrutiny after the Securities and Exchange Board of India (Sebi) earlier this month alleged that the company misrepresented nearly all of its revenue over five financial years to FY25, amounting to ₹15.15 trillion.
Rajesh Exports' troubles deepen with ED searches amid Rs 15 lakh crore revenue row
Enforcement Directorate officials conducted searches at Rajesh Exports' Bengaluru and Mumbai locations. This action follows scrutiny by market regulator Sebi over alleged financial irregularities, including inflated revenues attributed to overseas subsidiaries. Sebi has also restricted the company's CMD from trading its securities pending further investigation. The company has denied any wrongdoing, citing a potential communication gap.
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