The Enforcement Directorate (ED) conducted searches at various sites associated with Rajesh Exports Limited in Bengaluru and Mumbai. This action follows increased regulatory scrutiny on the company after a recent order from the Securities and Exchange Board of India (SEBI) raised concerns about its financial reporting practices. SEBI, based on a forensic review, alleged that Rajesh Exports may have inflated revenues through transactions with related entities.
The suspected overstatement of around Rs 15.15 lakh crore led to interim restrictions on Chairman Rajesh Mehta from trading the company’s securities. ED officials initiated coordinated searches at the company’s and its promoters’ premises early in the day, with operations ongoing at multiple locations. While no official statement has been released by the agency, sources suggest that these searches are part of an investigation into the company’s financial dealings.
This development comes after SEBI’s interim order against Rajesh Exports, Chairman Rajesh Mehta, and certain related entities, citing serious discrepancies in financial reporting and concerns over fund flows with associated entities. The ED searches aim to collect documents and evidence related to SEBI’s allegations, although specific details of seized materials or the investigation’s scope are not yet disclosed. Rajesh Exports is yet to comment publicly on the ED’s actions, with further updates expected as the investigation unfolds.
