ED raids Rajesh Exports over Rs 3,000 crore suspicious transactions, offshore diversion probe

The Enforcement Directorate conducted searches at Rajesh Exports Ltd's premises in Bengaluru and Mumbai over alleged financial irregularities involving suspicious transactions and proxy shareholding. The probe has flagged discrepancies in gold stock, offshore fund diversion, and questionable trade adjustments worth around Rs 3,000 crore, officials said.

The Enforcement Directorate (ED) on Tuesday carried out searches at nine locations in Bengaluru and Mumbai in connection with an ongoing investigation into alleged financial irregularities linked to Rajesh Exports Ltd (REL), officials said. The searches, which began in the morning, are based on findings pointing to multiple transactions involving REL shares routed through alleged "benamidars", raising concerns over the use of proxy entities to conceal actual ownership, sources said.

Officials indicated that over US$20 million may have been siphoned out of the country through such transactions, suggesting possible violations of foreign exchange and anti-money laundering laws. During the searches, the agency also found discrepancies in the company's physical gold stock. Sources said the actual stock was nearly 40 per cent lower than what was recorded in the company's books, indicating possible misreporting of inventory.

The ED is also examining trade receivables worth around Rs 3,000 crore, which were reportedly adjusted against gold imports. Officials described the delivery of these imports as "suspicious", suggesting the transactions may not have been backed by genuine trade activity. In addition, REL is stated to have invested over Rs 1,000 crore in African gold mines. However, investigators noted that these investments do not appear in the financial records of the company's subsidiaries, raising questions over the routing and transparency of funds.

The agency has also flagged the adjustment of nearly Rs 3,000 crore in trade receivables and payables against four to five foreign entities described as having "dubious credentials". The legitimacy of these entities is currently under scrutiny. Officials said the searches form part of a wider probe into suspected financial misconduct, including possible money laundering and diversion of funds. Further investigation is underway. (ANI)