ED raids Rajesh Exports' offices in Mumbai, Bengaluru over forex 'violations'
The Enforcement Directorate (ED) is carrying out searches at nine locations linked to Rajesh Exports Ltd. (REL) in Bengaluru and Mumbai as part of an
The Enforcement Directorate (ED) is carrying out searches at nine locations linked to Rajesh Exports Ltd. (REL) in Bengaluru and Mumbai as part of an ongoing investigation into alleged financial irregularities, sources said. Preliminary findings from the searches have revealed suspected violations involving share transactions, gold inventory discrepancies and overseas investments. According to investigators, the probe has uncovered multiple transactions in the shares of Rajesh Exports allegedly conducted through benamidars. Officials suspect that more than USD 20 million may have been siphoned out of the country through these transactions. The agency is examining the trail of funds and the identities of those involved in the alleged operations.
Read Full Story Another significant finding relates to the company's gold inventory. During the searches, investigators reportedly found that the physical stock of gold was nearly 40 per cent lower than the quantity reflected in the company's books of accounts. The discrepancy is being examined to determine whether it points to accounting irregularities or possible diversion of assets. The ED is also scrutinising trade transactions involving the company. Investigators are examining the adjustment of approximately Rs 3,000 crore worth of trade receivables against gold imports, the delivery and authenticity of which are under question.
Officials suspect that some of these transactions may have been structured to conceal the true nature of financial dealings. In addition, the agency is looking into overseas direct investment (ODI) made by Rajesh Exports in African gold mining projects. According to preliminary findings, the company is believed to have invested more than Rs 1,000 crore in gold mines in Africa. However, investigators claim that these investments do not appear in the financial records of any of the company's subsidiaries, raising questions about the flow and utilisation of funds. The probe has further focused on the netting off of trade receivables and payables amounting to nearly Rs 3,000 crore involving four to five foreign entities based in the UAE.
These entities are being examined due to concerns over their credentials and the nature of transactions conducted with them. Search operations are continuing, and the ED is expected to analyse documents, digital records and financial data seized during the raids. No official response from Rajesh Exports was immediately available. Ends
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