ED Conducts Searches at Rajesh Exports Over Alleged Foreign Exchange Irregularities

The Enforcement Directorate (ED) on Tuesday carried out searches at multiple locations linked to Rajesh Exports , a Bengaluru based gold refining and jewellery manufacturing company, as part of an ongoing investigation into alleged financial irregularities and possible violations of foreign exchange regulations.

Officials said around nine premises connected to the company were searched under provisions related to foreign exchange management laws , with locations spread across Bengaluru and Mumbai . The agency is examining a range of transactions flagged as suspicious, including alleged share dealings through benami entities and cross border financial flows.

According to officials, the probe has identified possible irregularities involving more than 20 million US dollars allegedly moved out of the country. Investigators have also pointed to a reported mismatch of around 40 per cent in gold stock inventory , when compared with figures reflected in official account books.

The ED is further examining allegations that nearly Rs 3,000 crore in trade receivables were adjusted against what are being described as fictitious gold imports, with questions raised over the authenticity of delivery records. The agency is also probing claims that the company may have made investments of over Rs 1,000 crore in African gold mining assets, which were allegedly not reflected in the books of subsidiary companies.

Another key aspect under scrutiny involves transactions worth about Rs 3,000 crore said to have been settled with four to five overseas entities whose credentials are now being verified by investigators.

The action comes in the backdrop of earlier findings by the Securities and Exchange Board of India (SEBI) , which had raised concerns over alleged large scale financial misrepresentation by the company. In an interim order issued earlier this month, SEBI flagged suspected revenue inflation over multiple financial years and questioned the authenticity of reported earnings linked to overseas subsidiaries, including Switzerland based Valcambi SA .

SEBI had also directed the company to cooperate with ongoing investigations, submit detailed records, and ensure transparent disclosure of financial and related party transactions. It further restrained company chairman Rajesh Mehta from trading in the firm’s securities during the course of proceedings.

Reacting to the allegations, Mehta has denied any wrongdoing, stating that the company has already submitted extensive documentation to the regulator and will continue to cooperate fully with all investigative agencies. He maintained that any discrepancies, if perceived, are based on incorrect interpretation of records and not on actual financial manipulation.

The ED is continuing its examination into possible violations, while further regulatory and forensic reviews are expected to determine the extent of compliance lapses, if any, within the company’s operations.