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ED Raids Rajesh Exports Amid ₹15 Lakh Cr Fraud Probe
23 Jun
Summary
- Enforcement Directorate searches Rajesh Exports on Tuesday.
- Allegations involve inflating revenues by over ₹15 lakh crore.
- SEBI has restrained CMD Rajesh Mehta from trading securities.
On Tuesday, the Enforcement Directorate conducted searches at Rajesh Exports, a company facing an investigation by the Securities and Exchange Board of India (SEBI) for alleged financial improprieties. The searches, carried out under the Foreign Exchange Management Act (FEMA), targeted the company's Bengaluru headquarters and premises in Mumbai.
Rajesh Exports is accused by SEBI of inflating its consolidated revenues by more than ₹15 lakh crore across five years. This alleged inflation reportedly occurred by attributing vast revenues to overseas subsidiaries, notably Switzerland-based Valcambi SA, despite the subsidiary's financial statements showing substantially lower figures.
In response to these allegations, SEBI has placed restrictions on Rajesh Exports' Chairman and Managing Director, Rajesh Mehta. He is barred from buying, selling, or dealing in the company's securities until further notice. The company has denied any wrongdoing, asserting the accuracy of its reported revenues and suggesting a communication gap with the regulator.
