The directorate of enforcement (ED) has conducted searches at nine premises linked to Rajesh Exports Ltd (REL) in Bengaluru and Mumbai as part of an investigation into alleged violations of the Foreign Exchange Management Act (FEMA), 1999.
The searches, which began on 23 June 2026, covered locations associated with the company and related persons.
According to ED, the investigation has uncovered suspected irregularities involving foreign transactions, overseas investments, stock records and share trading activities.
The agency said it seized documents, electronic devices and digital evidence during the operation, which are currently being analysed.
One of the key concerns raised by ED is the alleged non-availability of records relating to the company's foreign transactions. According to the agency, Rajesh Exports failed to produce documents concerning imports, exports, overseas investments and the settlement of foreign trade receivables and payables.
ED said the absence of records made it 'almost impossible' to verify the genuineness of the transactions under investigation.
As an example, the agency stated that neither contemporaneous records nor supporting documents relating to a purported investment of ₹1,035 crore in African mining assets were found during the searches or subsequently furnished by the company.
Probe into ₹3,000 Crore Foreign Trade Set-offs
The investigation has also focused on what ED described as opaque netting and set-off arrangements involving foreign trade receivables and payables.
According to the agency, Rajesh Exports is suspected of setting off trade receivables and payables amounting to nearly ₹3,000 crore with foreign entities located in the United Arab Emirates and other overseas jurisdictions.
ED said the counterparties involved are considered suspicious and the transactions are being examined to determine whether they complied with FEMA provisions.
Inventory Discrepancies Found during Verification
During physical verification conducted as part of the search operation, investigators reportedly found a substantial mismatch between stock recorded in factory registers and the inventory available on the premises.
According to ED, the discrepancy was around 40%, raising questions about stock accounting and inventory management practices. The agency, however, did not disclose the value of the mismatch.
Unusual Management Remuneration under Scanner
ED also pointed to what it described as significant departures from normal commercial practices in the company's management and financial structure.
According to the agency, remuneration paid to senior management appeared disproportionately low compared with the scale of operations. ED said the chief financial officer (CFO) has not drawn any salary since 2020, while the managing director (MD) was reportedly paid around ₹17,000 per month.
The agency noted that this was despite the company reporting consolidated revenues of about ₹7.7 lakh crore. Investigators are examining whether these arrangements have any connection with the broader FEMA probe.
Suspicious Share Trades and Offshore Links
Another area under scrutiny involves block trades in Rajesh Exports shares.
According to ED, certain individuals linked to these transactions appear in data leaks published by the International Consortium of Investigative Journalists (ICIJ), suggesting possible undisclosed offshore connections.
The agency said these links are currently being examined.
ED further alleged that more than ₹600 crore was siphoned out of India through share manipulation involving alleged non-resident Indian (NRI) benamidars. Investigators are analysing trading patterns, fund flows and the role of overseas entities to determine whether foreign exchange regulations were violated.
The searches were carried out under FEMA provisions governing cross-border transactions and foreign exchange dealings.
ED said the evidence collected during the operation is being examined to establish the nature and extent of the alleged contraventions.
No enforcement action has yet been announced against the company or its officials, and the investigation remains ongoing.
Rajesh Exports, one of India's largest gold exporters and refiners, had not publicly responded to the allegations at the time of publication.
The agency said further investigation is underway.
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