The Directorate of Enforcement (ED) conducted search and seizure operations at nine premises of Rajesh Exports Limited (REL) in Bengaluru and Mumbai. This action is part of an ongoing investigation into suspected contraventions of the Foreign Exchange Management Act (FEMA). The company failed to produce documentation for its foreign transactions, making verification difficult.
Investigations revealed that Rajesh Exports Ltd did not provide records for its claimed investment of Rs 1,035 crore in African Mines. The company is suspected of setting off trade payables and receivables with foreign parties from the UAE and other jurisdictions, involving around Rs 3,000 crore. Physical stock verification showed a significant discrepancy of about 40% between recorded and actual stock.
Key business indicators of the company showed deviations from normal practices. The remuneration for senior management was unusually low given the company’s scale of operations. The CFO has not been paid since 2020, and the MD received only about Rs 17,000 per month despite a revenue of approximately Rs 7.7 Lakh crore. Suspicious block trades in Rajesh Exports’ scrip by certain individuals with possible offshore links are under scrutiny.
During the search, incriminating documents and digital evidence were seized for examination. The investigation is ongoing, with further progress expected in the case.
