ED Raids Rajesh Exports in Bengaluru, Mumbai Over Suspected Financial Irregularities
The Enforcement Directorate (ED) on Tuesday conducted searches at nine locations linked to Rajesh Exports Ltd (REL), a Bengaluru-based gold exporter, as part of an investigation into alleged financial irregularities. The searches were carried out in Bengaluru and Mumbai.
Preliminary findings from the operation suggest several irregularities, including suspected benami share transactions, a significant shortfall in gold inventory, and questionable overseas dealings, according to sources familiar with the investigation.
Sources indicated that investigators have found evidence of multiple transactions in the company's shares through alleged benamidars (beneficial owners not appearing in official records). These transactions may have facilitated the siphoning of more than $20 million out of the country.
Additionally, the searches revealed a major discrepancy in the company's gold holdings. Physical stock of gold found during the operation was allegedly around 40% lower than the quantity recorded in the company's books of accounts, sources said.
In a separate exchange filing responding to a SEBI order, the company stated that there was “no reason” for it to inflate revenues while maintaining earnings. The company also said it was cooperating with the regulator and would provide all relevant documents to clarify its position.
The ED's investigation is ongoing, and further details are awaited.
