ED searches Rajesh Exports premises over ₹3,000-cr dubious deals, gold mismatch
The Enforcement Directorate on Tuesday carried out searches at nine premises linked to Rajesh Exports Ltd. in Bengaluru and Mumbai as part of an ongoing
The Enforcement Directorate on Tuesday carried out searches at nine premises linked to Rajesh Exports Ltd. in Bengaluru and Mumbai as part of an ongoing investigation, with officials examining suspected benami share transactions, discrepancies in gold inventory and questionable overseas transactions. Search operations were still underway at the time of filing this report. "Investigation conducted so far has revealed multiple transactions in the scrip of Rajesh Exports through benamidars. Preliminary findings indicate that over $20 million may have been siphoned out of the country through such transactions," an ED official said on condition of anonymity. According to officials, search teams also detected a significant mismatch between the company's declared gold inventory and the physical stock available at the premises searched. "Physical verification carried out during the searches has shown that the gold stock found was around 40% lower than the stock reflected in the books," the official said. Investigators are also examining transactions involving nearly ₹3,000 crore of trade receivables that were allegedly adjusted against gold imports, the delivery of which is under scrutiny. "We are examining a case where trade receivables of around ₹3,000 crore have been set off against gold imports whose delivery appears suspicious," the official said.
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. Shares of the company hit the 5% upper circuit, closing at ₹108.25 apiece on the BSE on Tuesday, marking a sharp recovery from the 52-week low of ₹73.20 touched following the regulatory action. Another issue under investigation relates to overseas direct investment (ODI) by the company in African gold mining assets. "Rajesh Exports has ostensibly invested more than ₹1,000 crore in African gold mines. However, this investment is not reflected in the books of accounts of any of its subsidiaries and is therefore being examined," the official said. The financial crime-fighting agency is also scrutinizing whether Rajesh Exports group firms are quietly adjusting mutual dues with UAE-based entities to hide the real movement of money. "Physical verification carried out during the searches has shown that the gold stock found was around 40% lower than the stock reflected in the books," the official said. Investigators are also examining transactions involving nearly ₹3,000 crore of trade receivables that were allegedly adjusted against gold imports, the delivery of which is under scrutiny.
The BriefWire