Why ED, CBI failed to raise red flags over alleged irregularities of Rajesh Exports, asks Congress

Congress leader Pawan Khera addresses a press conference at the AICC office in New Delhi. | Photo credit: Shashi Shekhar Kashyap

The Congress on Friday (June 5, 2026) questioned why agencies investigating economic offenses such as the Enforcement Directorate (ED) and the Serious Fraud Investigation Office (SFIO), among others, did not act over alleged financial irregularities at Rajesh Exports, a jewelery company, after preliminary findings by the Securities and Exchange Board of India (India’s biggest corporate case) pointed for one case of embezzlement in Indian financial history.

At a press conference, Congress Media and Publicity Department Chairman Pawan Khera said the findings not only revealed irregularities in reported income of about ₹15.15 crore, but revealed serious lapses in the government’s regulatory oversight. It reflected the dangers of the “crony capitalist model”, Mr Khera added.

“Damn Allegation”

Calling the findings a “damning indictment” of the government’s regulatory architecture, Mr Khera asked why agencies like the ED, SFIO, Central Bureau of Investigation (CBI) and Financial Intelligence Unit (FIU) did not act despite the scale of the alleged irregularities.

“Why didn’t the ED, which works 24×7 against the opposition, raise any red flag?” asked Mr. Khera. He also wondered why SEBI took seven months to deal with the complaint.

Try it yourself

Citing the regulator’s interim order, Mr Khera said 97% to 99% of the company’s reported revenue in the period came from overseas and discontinued subsidiaries.

He added that SEBI’s investigation focused on Valcambi SA, which Rajesh Exports described as its core operating business, and found significant discrepancies between the revenue reported by the subsidiary and the revenue reflected in the group’s consolidated financial statements.

Mr. Khera further alleged that SEBI investigators and forensic auditors were denied full access to transaction records, customer and supplier data, inventory data and other key documents. He said the regulator rejected the company’s argument that Swiss confidentiality laws prevented disclosure of the information.

Alleging massive erosion of investors’ wealth, Mr Khera said ordinary shareholders have suffered significant losses as the company’s market capitalization has plummeted over the past three years. He demanded accountability from the center if the alleged irregularities were found.

Published – 05 Jun 2026 22:22 IST