Mumbai, June 24: The Enforcement Directorate (ED) has launched a significant operation against Rajesh Exports Limited (REL) and its associates, conducting searches at nine locations in Bengaluru and Mumbai. This action is part of an investigation related to alleged violations of the Foreign Exchange Management Act (FEMA), as announced in an official statement on Wednesday.
The ED’s investigation has uncovered several serious irregularities. According to the agency, Rajesh Exports Limited has failed to provide records related to its foreign transactions. The company did not submit documents concerning outstanding payments and receipts linked to imports, exports, foreign investments, and international trade, making it nearly impossible to verify the authenticity of these transactions.
Furthermore, the ED noted that documents and records related to a ₹1,035 crore investment in African mines were neither found during the searches nor have they been made available by the company.
The investigation also revealed that the company was allegedly offsetting trade liabilities and receivables with suspicious firms located in the United Arab Emirates (UAE) and other foreign territories. The amount involved in these transactions is estimated to be around ₹3,000 crore, which is currently under scrutiny.
Physical verification during the searches indicated a significant discrepancy between the company’s stock records and the actual stock available. The ED reported a difference of approximately 40% between the stock listed in the factory register and the stock present on-site.
Moreover, the agency discovered several anomalies in the company’s key business indicators. For instance, the salary level for senior management was found to be disproportionately low compared to the size of the business. Notably, the Chief Financial Officer (CFO) has reportedly not received any salary since 2020, while the Managing Director (MD) is only receiving around ₹17,000 per month, despite the company reporting a consolidated revenue of approximately ₹7.7 lakh crore.
The investigation has also revealed suspicious block trades in the company’s shares by certain individuals, whose names appear in a leak from the International Consortium of Investigative Journalists (ICIJ), raising concerns about potential undisclosed offshore links.
Additionally, it has come to light that over ₹600 crore may have been sent out of India through share manipulation allegedly involving “NRI benamidars.”
The ED stated that several important documents and digital evidence have been seized during the search operations that began on Tuesday. The agency is currently examining the seized documents and electronic records, with further investigations ongoing.
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
