In a statement, the agency said Rajesh Exports did not provide records relating to imports, exports, overseas investments, and the settlement of foreign trade receivables and payables. “REL failed to produce documentation in respect of its foreign transactions… thereby rendering verification of the genuineness of such transactions almost impossible,” the ED said.
The agency highlighted the absence of records in one specific case, stating that documents related to the company’s claimed investment of ₹1,035 crore in African mines were not found or provided.
The ED’s findings come amid parallel scrutiny by the Securities and Exchange Board of India (SEBI), which had earlier flagged instances of missing financial statements from several subsidiaries and step-down subsidiaries of Rajesh Exports. These include REL Singapore, Bab Al Rayan Jewellery LLC, GGR, Valcambi SA, Valcambi USA Inc and ACC Energy, covering FY20–FY25.
Alongside the documentation concerns, the ED has flagged several other issues in its ongoing investigation.
First, it alleged opaque netting and set-offs of foreign trade receivables against payables of around ₹3,000 crore. The agency said the company was adjusting receivables and payables involving foreign entities based in the UAE and other jurisdictions.
Second, it pointed to discrepancies in stock. Physical verification during searches reportedly revealed a difference of about 40% between stock recorded in factory registers and actual stock found at the premises.
Third, the ED flagged what it termed disproportionate remuneration practices. It noted that the Chief Financial Officer had not received any salary since 2020, while the Managing Director was paid around ₹17,000 per month, despite the company reporting consolidated revenue of about ₹7.7 lakh crore.
Fourth, the agency raised concerns over suspicious block trades and possible share manipulation. It said certain individuals linked to the trades figure in leaks released by the International Consortium of Investigative Journalists (ICIJ), suggesting possible undisclosed offshore links. The ED also alleged that more than ₹600 crore was siphoned out of India through share manipulation using NRI benamidars.
The ED probe follows SEBI’s earlier interim order, which had alleged that Rajesh Exports inflated its consolidated revenue by up to ₹15.15 lakh crore over FY21–FY25 by attributing large revenues to overseas subsidiaries, particularly Switzerland-based Valcambi SA.
SEBI had also directed the company to cooperate with the investigation, submit documents and ensure fair disclosures in its financial statements and related-party transactions. The regulator barred Mehta from dealing in the company’s securities pending further proceedings. Rajesh Exports has denied allegations of manipulation, stating that revenue inflation claims are misplaced.
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