The ED is searching the premises of Rajesh Exports in Bengaluru, Mumbai for suspected FEMA violations

The investigation reportedly revealed several alleged irregularities involving foreign transactions, stock records, management compensation and suspected stock manipulation. | Photo credit: Getty Images

The Enforcement Directorate (ED) has conducted search and seizure operations at nine locations in Bengaluru and Mumbai in connection with the ongoing investigation of Rajesh Exports Limited for alleged violation of the Foreign Exchange Management Act (FEMA).

According to a Wednesday press release, the searches began on Tuesday and involved premises associated with the company and its affiliates. The investigation reportedly revealed several alleged irregularities involving foreign transactions, stock records, management compensation and suspected stock manipulation.

The ED said the company failed to submit documentation related to its foreign transactions, including imports, exports, foreign investments and settlement of foreign trade receivables and payables. Investigators alleged that records relating to an alleged investment of ₹1,035 crore in African mining ventures were neither found nor provided by the company during the searches.

Another key issue identified by the agency is the netting of foreign trade receivables with foreign trade liabilities of around ₹3,000 crore. The ED alleged that these transactions involved suspicious overseas entities based in the UAE and other foreign jurisdictions.

During a physical inspection at the company’s premises, officials reportedly found a nearly 40% discrepancy between the stock recorded in the factory registers and the actual stock available.

The investigation also raised questions about remuneration paid to senior management. According to the ED, the company’s CFO has not received a salary since 2020, while the CEO was paid around ₹17,000 per month, despite the company reporting consolidated revenues of around ₹7.7 crore.

The agency further alleged that the suspicious block trades were carried out in the company’s shares by certain individuals whose names appeared in the leaks published by the International Consortium of Investigative Journalists. The ED said the transactions indicate possible undisclosed offshore ties, which are under investigation.

Investigators also alleged that more than ₹600 million was siphoned out of India through stock manipulation involving non-resident Indian benamidars.

During the searches, officers seized various documents and digital evidence, which are currently being examined.

Published – 24 Jun 2026 20:22 IST