Mumbai, June 25: Rajesh Exports, currently under investigation by SEBI, faced a 5% lower circuit on Thursday, causing its shares to drop to ₹97.02 on the National Stock Exchange (NSE). This decline follows allegations from the Enforcement Directorate (ED) regarding violations of the Foreign Exchange Management Act (FEMA) related to international transactions.
According to the ED, Rajesh Exports failed to adhere to standard business practices and did not present essential documents linked to imports, exports, foreign investments, and international trade transactions.
The agency reported difficulties in verifying several cross-border transactions due to a lack of supporting records, following raids at multiple locations in Bengaluru and Mumbai. The ED conducted searches at nine sites associated with Rajesh Exports.
Further, the ED noted a significant discrepancy, stating that the actual gold stock was approximately 40% less than what was recorded in the company’s accounts. The press release from the ED also highlighted that the salaries of senior officials did not align with their responsibilities. Notably, the Chief Financial Officer (CFO) has not received any salary since 2020, while the Managing Director earns only ₹17,000 per month.
SEBI’s interim order revealed that the company misrepresented nearly ₹15.15 lakh crore in income from fiscal year 2021 to fiscal year 2025 through its foreign subsidiary, which lacked any public disclosure of its financial statements.
Additionally, SEBI accused Mehta of transferring company funds into personal accounts, resulting in a loss of approximately ₹12,726 crore for shareholders.
The order further alleged that the company repeatedly failed to provide access to critical accounting systems, financial records, and supporting documents, obstructing investigators and forensic auditors from independently verifying a significant portion of the reported transactions.
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ABS
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