The Directorate of Enforcement (ED) has carried out search and seizure operations at nine premises in Bengaluru and Mumbai linked to Rajesh Exports Limited (REL) and connected persons as part of an ongoing probe under the Foreign Exchange Management Act (FEMA), 1999.
In a press release dated June 24, the agency said the action followed an investigation into suspected contraventions of FEMA by the company. During the searches, the ED said it identified multiple irregularities related to foreign transactions, trade receivables, stock records and certain market-linked dealings.
According to the agency, Rajesh Exports allegedly failed to provide records linked to several foreign transactions, including imports, exports, overseas investments and settlement of foreign trade receivables and payables. The ED also said it found suspicious adjustment of trade payables of around ₹3,000 crore against trade receivables from foreign entities, including parties based in the UAE and other jurisdictions.
The agency further alleged a stock discrepancy of around 40% between recorded stock in factory registers and the physical stock found during verification. It also flagged remuneration-related anomalies involving key personnel, saying compensation patterns appeared inconsistent with the company’s scale of operations.
In addition, the ED said the investigation has revealed suspicious block trades in the company’s shares by certain individuals, with possible links to undisclosed offshore entities. It alleged that more than ₹600 crore was shifted out of India through share-manipulation using NRI entities.
The ED said incriminating documents and digital evidence were seized during the searches and are being examined. Further investigation is underway.
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