ED raids 9 locations of Rajesh Exports: Allegations of sending ₹190 crore abroad and getting 40% less gold; SEBI banned from the market

ED i.e. Enforcement Directorate raided 9 locations in Mumbai and Bengaluru linked to jewelery manufacturing company Rajesh Exports and its promoters. According to media reports, the investigating agency took this action under FEMA i.e. Foreign Exchange Management Act.

During investigation, a difference was found between the books of accounts and the actual stock of the company. The company is also facing allegations of violation of foreign exchange rules and misappropriation. Recently, market regulator SEBI had also banned the company and its chairman from the stock market.

Real gold found 40% less than stock

According to ED, the physical stock found on the spot was 40% less than what was shown in the company’s accounts.

Apart from this, investigation has also revealed that shares of Rajesh Exports Limited were transacted several times through benamidars.

Through this entire fraud, about 20 million dollars i.e. about Rs 190 crores have been sent out of the country illegally.

Suspicious import of ₹3000 crore and secret investment in African mines

ED is currently investigating on three counts…

• The company showed that it imported gold from abroad to repay a loan of ₹3,000 crore, but ED suspects that this gold was imported only on paper, no such transaction took place in reality.
• The company invested more than ₹1,000 crore in gold mines in Africa. The surprising thing is that the company did not register the information about this huge investment in the accounts of any of its subsidiaries. That means this money was invested secretly.
• The company has equated transactions (creditors and liabilities) worth ₹3,000 crore with 4-5 foreign companies whose track record is extremely dubious and questionable.

SEBI alleges: Showed fake revenue of ₹15.15 lakh crore

• The company inflated its total earnings on paper by Rs 15.15 lakh crore between 2021 and 2025. That is, even the income which was not actually earned was declared as our income.
• The company claimed that this huge income was earned from its foreign company in Switzerland.
• When the actual accounts (audit records) of that foreign company were examined, it was found that the earnings there were very nominal.
• The company has shown almost the entire portion of its earnings in the name of such foreign companies, whose actual information is not available to the general public or investors.

Revenue of Rajesh Exports (in crores of rupees)

Details	2020-21	2021-22	2022-23	2023-24	2024-25	2025-26
Total Revenue from Consolidated Operations (A)	2.58 lakhs	2.43 lakhs	3.39 lakhs	2.80 lakhs	4.23 lakhs	7.78 lakhs
Total Revenue from Standalone Operations (B)	2.06 thousand	6.23 thousand	5.76 thousand	5.40 thousand	7.02 thousand	9.18 thousand
Revenue from subsidiaries (AB)	2.56 lakhs	2.36 lakhs	3.33 lakhs	2.75 lakhs	4.16 lakhs	7.69 lakhs
Consolidated Profit After Tax / Net Profit (C)	845	1.00 lakh	1.43 thousand	336	95	113
Standalone Profit After Tax / Net Profit (D)	99	23	30	17	24	32
Net profit received from subsidiaries (CD)	746	987	1,402	318	71	81

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