Rs 17,000 salary for MD, 40% stock mismatch: ED's explosive findings after raids on Rajesh Exports
According to the ED, one of the key issues uncovered during the investigation was the non-availability of records relating to the company's foreign transactions
- Jun 24, 2026,
- Updated Jun 24, 2026 6:02 PM IST
A day after conducting search and seizure operations at nine locations linked to Rajesh Exports Ltd (REL) in Bengaluru and Mumbai, the Enforcement Directorate (ED) on Wednesday disclosed a series of findings that it said emerged during its ongoing investigation under the Foreign Exchange Management Act (FEMA), 1999.
The agency said the searches, which began on June 23, were carried out in connection with suspected FEMA violations by Rajesh Exports and associated persons.
Rajesh Exports hit its 5 per cent lower circuit limit in Wednesday's trade. The stock was locked at its lower circuit limit at Rs 102.85 apiece. This scrip has hit its upper circuit limit for seven straight sessions.
Don't Miss: Rajesh Exports shares hit 5% lower circuit limit after 41% rally in 7 sessions; here's why
Missing records on foreign transactions
According to the ED, one of the key issues uncovered during the investigation was the non-availability of records relating to the company's foreign transactions.
The agency alleged that Rajesh Exports failed to provide documentation related to imports, exports, overseas investments and settlement of foreign trade receivables and payables, making verification of the transactions difficult.
As an example, the ED said records supporting a claimed investment of Rs 1,035 crore in African mines were not provided by the company as yet. "Contemporaneous records and documentation of claimed investment of Rs. 1035 Crore into African Mines were neither found nor provided by the company as yet."
Rs 3,000 crore set-offs under scrutiny
The ED also flagged what it described as opaque netting or set-offs of foreign trade receivables against trade payables worth around Rs 3,000 crore.
According to the agency, the company was engaged in setting off trade receivables and payables involving "suspicious foreign parties" based in the UAE and other overseas jurisdictions.
40% stock discrepancy detected
During physical verification carried out as part of the search operation, investigators found a substantial mismatch between recorded and actual inventory, the ED said.
The agency claimed there was an approximately 40% difference between stock reflected in factory registers and the physical stock available at the premises.
ED flags the remuneration pattern
The probe also examined compensation paid to key management personnel.
According to the ED, the company's business indicators showed departures from normal commercial practices. It noted that the Chief Financial Officer had not received any salary since 2020, while the Managing Director was paid only about Rs 17,000 per month despite the company reporting consolidated revenue of nearly Rs 7.7 lakh crore.
Suspicious trades, offshore links under examination
The ED further said its investigation had revealed suspicious block trades in Rajesh Exports shares.
According to the agency, some individuals involved in these trades also appeared in disclosures released by the International Consortium of Investigative Journalists (ICIJ), indicating possible undisclosed offshore links that are currently under examination.
The agency alleged that more than Rs 600 crore was siphoned out of India through share manipulation involving NRI benamidars.
Rajesh Exports is one of India's largest gold exporters and jewellery manufacturers. The company has not yet publicly responded to the findings detailed in the ED statement.
A day after conducting search and seizure operations at nine locations linked to Rajesh Exports Ltd (REL) in Bengaluru and Mumbai, the Enforcement Directorate (ED) on Wednesday disclosed a series of findings that it said emerged during its ongoing investigation under the Foreign Exchange Management Act (FEMA), 1999.
The agency said the searches, which began on June 23, were carried out in connection with suspected FEMA violations by Rajesh Exports and associated persons.
Rajesh Exports hit its 5 per cent lower circuit limit in Wednesday's trade. The stock was locked at its lower circuit limit at Rs 102.85 apiece. This scrip has hit its upper circuit limit for seven straight sessions.
Don't Miss: Rajesh Exports shares hit 5% lower circuit limit after 41% rally in 7 sessions; here's why
Missing records on foreign transactions
According to the ED, one of the key issues uncovered during the investigation was the non-availability of records relating to the company's foreign transactions.
The agency alleged that Rajesh Exports failed to provide documentation related to imports, exports, overseas investments and settlement of foreign trade receivables and payables, making verification of the transactions difficult.
As an example, the ED said records supporting a claimed investment of Rs 1,035 crore in African mines were not provided by the company as yet. "Contemporaneous records and documentation of claimed investment of Rs. 1035 Crore into African Mines were neither found nor provided by the company as yet."
Rs 3,000 crore set-offs under scrutiny
The ED also flagged what it described as opaque netting or set-offs of foreign trade receivables against trade payables worth around Rs 3,000 crore.
According to the agency, the company was engaged in setting off trade receivables and payables involving "suspicious foreign parties" based in the UAE and other overseas jurisdictions.
40% stock discrepancy detected
During physical verification carried out as part of the search operation, investigators found a substantial mismatch between recorded and actual inventory, the ED said.
The agency claimed there was an approximately 40% difference between stock reflected in factory registers and the physical stock available at the premises.
ED flags the remuneration pattern
The probe also examined compensation paid to key management personnel.
According to the ED, the company's business indicators showed departures from normal commercial practices. It noted that the Chief Financial Officer had not received any salary since 2020, while the Managing Director was paid only about Rs 17,000 per month despite the company reporting consolidated revenue of nearly Rs 7.7 lakh crore.
Suspicious trades, offshore links under examination
The ED further said its investigation had revealed suspicious block trades in Rajesh Exports shares.
According to the agency, some individuals involved in these trades also appeared in disclosures released by the International Consortium of Investigative Journalists (ICIJ), indicating possible undisclosed offshore links that are currently under examination.
The agency alleged that more than Rs 600 crore was siphoned out of India through share manipulation involving NRI benamidars.
Rajesh Exports is one of India's largest gold exporters and jewellery manufacturers. The company has not yet publicly responded to the findings detailed in the ED statement.