ED Uncovers Suspicious Transactions in Rajesh Exports Probe: Rs 3,000 Crore Trade Set-offs Revealed

The Enforcement Directorate (ED) on Wednesday disclosed findings from its searches at nine premises of Rajesh Exports Ltd, revealing suspicious foreign transactions amounting to Rs 3,000 crore routed through the United Arab Emirates. The agency also stated that it found no evidence to support the company's claim of a Rs 1,035 crore investment in African mines.

According to the ED, the investigation uncovered opaque netting and set-offs of large foreign trade receivables against foreign trade payables, totaling approximately Rs 3,000 crore. The agency highlighted that Rajesh Exports failed to produce documentation for its foreign transactions, including imports, exports, overseas investments, and settlement of trade receivables and payables, making it nearly impossible to verify the genuineness of these transactions.

Further, the ED noted discrepancies in stock records during physical verification. A 40% difference was found between the stock recorded in factory registers and the actual physical stock present at the premises. The agency also pointed out that the Managing Director of the company, which reported a consolidated revenue of Rs 7.7 lakh crore, was paid a monthly salary of just Rs 17,000, while the Chief Financial Officer had not received any payment since 2020.

The ED claimed to have found evidence of suspicious block trades in Rajesh Exports Ltd (REL) scrip, executed by certain individuals, including over Rs 600 crore allegedly siphoned out of India through share manipulation using Non-Resident Indian (NRI) 'benamidars' (front persons). The investigation is ongoing.