ED searches at 9 premises linked to Bengaluru-based gold exporter over ‘monetary irregularities’ | India Information
3 min learnNew DelhiJun 24, 2026 01:15 AM IST
The Enforcement Directorate (ED) on Tuesday carried out searches at 9 premises linked to gold exporter Rajesh Exports Ltd (REL) in Bengaluru and Mumbai as a part of an investigation into alleged monetary irregularities, with preliminary findings pointing to suspected benami share transactions, a big mismatch in gold stock, and questionable abroad dealings.
In keeping with sources, investigators have uncovered proof suggesting a number of transactions in Bengaluru-based Rajesh Exports’ shares by way of alleged benamidars, by way of which greater than $20 million might have been siphoned overseas.
The searches additionally revealed a significant discrepancy within the firm’s gold holdings, with the bodily inventory of the metallic discovered throughout the operation allegedly round 40% decrease than the amount mirrored within the firm’s books of accounts, sources stated.
The newest motion comes days after the Securities and Change Board of India (SEBI) issued an interim order accusing Rajesh Exports of inflating revenues by about Rs 15.15 lakh crore between FY21 and FY25 and barred the corporate and its promoter-chairman Rajesh Mehta from dealing in securities pending additional investigation.
Other than the findings rising from the searches, the ED is inspecting a number of transactions involving abroad entities and gold imports.
Investigators are scrutinising the adjustment of round Rs 3,000 crore in commerce receivables towards gold imports whose supply is taken into account suspicious. Officers are inspecting whether or not the imports have been real and whether or not the transactions have been used to hide motion of funds.
The company can also be probing outward direct funding (ODI) of greater than Rs 1,000 crore that Rajesh Exports is claimed to have made in African gold mining ventures. Sources stated the purported investments don’t seem within the books of accounts of any of the corporate’s subsidiaries, elevating questions over the vacation spot and utilisation of the funds.
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One other space beneath examination entails the netting off of almost Rs 3,000 crore price of commerce receivables and commerce payables towards 4 to 5 overseas entities based mostly within the UAE. Investigators suspect these entities might have doubtful credentials and are inspecting whether or not they have been used to route transactions and obscure the precise motion of cash.
The ED searches add to the regulatory scrutiny the corporate is already going through after SEBI alleged that 97-99% of the revenues reported by sure abroad subsidiaries couldn’t be independently verified and will have been linked to transactions involving overseas entities.
Rajesh Exports, one in all India’s largest gold exporters and proprietor of Swiss gold refiner Valcambi, has denied SEBI’s allegations. The corporate has maintained that its reported revenues are correct and attributed the regulator’s issues to what it described as a confusion between income figures and EBITDA numbers of its Swiss subsidiary.
In an trade submitting after the SEBI order, the corporate stated there was “no purpose” for it to inflate revenues whereas sustaining earnings. The corporate stated it was cooperating with the regulator and would supply all related paperwork to make clear its place.
