Rajesh Exports Faces ED Heat: Missing Records, Africa Assets and Rs 17,000 MD Salary Under Probe

ED searches at Rajesh Exports-linked premises have flagged missing overseas records, ₹3,000 crore trade set-offs, stock mismatch and alleged offshore share manipulation under FEMA.

New Delhi: The Directorate of Enforcement has said that searches at premises linked to Rajesh Exports Ltd in Bengaluru and Mumbai have revealed suspected violations under the Foreign Exchange Management Act. The agency conducted search and seizure operations at nine locations on June 23 as part of its ongoing investigation into the company and connected persons.

According to the ED, documents and digital evidence recovered during the searches are being examined. The agency said the probe relates to foreign transactions, overseas investments, stock records and suspected share-market irregularities.

Missing Foreign Transaction Records

The ED alleged that Rajesh Exports failed to produce key records related to imports, exports, overseas investments and settlement of foreign trade receivables and payables. The agency said the absence of documentation made it difficult to verify the genuineness of several transactions.

Investigators also flagged a claimed investment of ₹1,035 crore in African mines, saying supporting records were neither found during the searches nor provided by the company so far.

₹3,000 Crore Set-Offs Under Lens

The agency said it found suspected set-offs of trade payables and receivables involving foreign parties based in the UAE and other overseas jurisdictions. These transactions are estimated at around ₹3,000 crore and are now being examined for possible FEMA violations.

During physical verification, ED officials also found a stock mismatch of nearly 40% between inventory recorded in factory registers and the actual stock available at the premises.

Share Manipulation Angle

The ED also said it is examining suspicious block trades in Rajesh Exports shares involving certain individuals with alleged offshore links. According to the agency, over ₹600 crore may have been siphoned out of India through share manipulation using NRI benamidars.

The agency further flagged unusual remuneration patterns, claiming the company’s chief financial officer had not received salary since 2020, while the managing director was paid around ₹17,000 per month despite the company reporting consolidated revenue of nearly ₹7.7 lakh crore.

The latest ED action comes amid separate regulatory scrutiny of Rajesh Exports by SEBI over alleged revenue misrepresentation. Further investigation is underway.