The Enforcement Directorate (ED) on Tuesday, 23 June conducted coordinated searches at multiple premises linked to Rajesh Exports Limited in Bengaluru and Mumbai, as part of an investigation into alleged financial irregularities at the gold and jewellery conglomerate. The action follows a recent interim order by the Securities and Exchange Board of India (SEBI) that flagged serious concerns over the company's financial reporting practices.

What Triggered the Raids

The ED searches are directly linked to a SEBI interim order issued against Rajesh Exports, its Chairman Rajesh Mehta, and certain related entities. In its order, the market regulator — citing findings from a forensic review — alleged that the company may have significantly overstated revenues through transactions involving associated entities.

The suspected revenue misstatement was estimated at around ₹15.15 lakh crore, an extraordinary figure that, if substantiated, would rank among the largest alleged accounting irregularities in Indian corporate history. As part of its interim measures, SEBI imposed restrictions on Chairman Rajesh Mehta from trading in the company's securities.

How the Searches Unfolded

According to sources familiar with the matter, ED officials launched the coordinated searches early in the day at premises associated with the company and its promoters across Bengaluru and Mumbai. The operations were still ongoing at several locations when this report was filed.

The agency had not issued an official statement at the time of publication. Sources indicated the searches are aimed at gathering documents and evidence related to the allegations flagged by SEBI. Details of the material seized or the precise scope of the investigation were not immediately available.

Company Yet to Respond

Rajesh Exports Limited had not issued any public response to the ED action as of the time of filing. The company has also not publicly addressed the SEBI interim order in the period since it was issued.

Regulatory and Market Context

This comes amid intensifying regulatory scrutiny of listed companies' financial disclosures, with both SEBI and the ED increasingly coordinating on cases where market-facing fraud allegations intersect with money laundering concerns. Notably, SEBI's forensic review mechanism — which underpinned the Rajesh Exports order — has been deployed with greater frequency in recent years following high-profile accounting controversies in Indian markets.

Rajesh Exports, headquartered in Bengaluru, is one of India's largest gold processing and jewellery export companies and has been listed on Indian exchanges for decades. The scale of the alleged revenue misstatement — reportedly running into the crore-of-crores range — has drawn significant attention from market participants and legal observers alike.

Further details on the scope of the ED investigation and any formal charges are awaited as the probe progresses.