ED conducts searches against Rajesh Exports amid SEBI probe over alleged financial irregularities

The Enforcement Directorate (ED) conducted searches against Rajesh Exports, which is already under scrutiny by the Securities and Exchange Board of India (SEBI) over alleged financial irregularities, official sources said.

According to officials, the searches are being carried out under the Foreign Exchange Management Act (FEMA) at locations linked to the Bengaluru-headquartered company in Bengaluru and Mumbai.

SEBI, in an interim order, has alleged that Rajesh Exports inflated its consolidated revenues by more than ₹15 lakh crore over a five-year period by attributing large revenues to its overseas subsidiaries, particularly Switzerland-based Valcambi SA, despite audited financial statements indicating significantly lower figures.

Following the order, SEBI has restrained company Chairman and Managing Director Rajesh Mehta from buying, selling or dealing in the company’s securities until further notice.

Rajesh Exports has denied any wrongdoing, stating that its reported revenues are accurate and attributing the concerns to a possible communication gap with the market regulator.

The ED’s action adds a new layer of scrutiny to the ongoing regulatory investigation into the company’s financial disclosures and overseas transactions.