Key facts
- ED searched Rajesh Exports premises in Bengaluru and Mumbai
- Suspected FEMA violations cited as the trigger
- Company revenue reported at Rs 7.7 lakh crore
- CFO received no salary since 2020; MD paid Rs 17,000 per month
- ED flagged stock mismatch and large offshore deals
The Enforcement Directorate has raided the offices of Rajesh Exports in Bengaluru and Mumbai, acting on suspected violations of the Foreign Exchange Management Act, in what is shaping up to be one of the more unusual corporate governance cases in recent memory. The searches have brought to light stark anomalies between the company's enormous reported scale and its internal financial conduct.
Rajesh Exports, one of India's largest gold refining and jewellery export companies, reported revenue of Rs 7.7 lakh crore — yet investigators found that its CFO had not received a salary since 2020, and the Managing Director was being paid just Rs 17,000 per month. These discrepancies raise immediate questions about the authenticity of the company's financial reporting and the functioning of its leadership structure.
The ED's searches also turned up what officials described as a mismatch in stock figures and large offshore transactions. The combination of suspected FEMA violations and these internal financial irregularities has drawn significant regulatory and investor attention to the Bengaluru-headquartered conglomerate.
Rajesh Exports has not yet issued a detailed public response to the raids. The case will be closely watched by market regulators, auditors, and shareholders as investigators piece together the full picture of the company's financial operations.