ED raids Rajesh Exports at 9 premises, uncovers ₹3,000 crore FEMA violations
Synopsis
The ED has raided Rajesh Exports Limited across nine locations, uncovering a ₹3,000 crore suspected trade set-off with UAE-linked parties, a ₹1,035 crore undocumented African Mines investment, a 40% physical stock shortfall, and alleged ₹600 crore share manipulation via NRI benamidars — all while the company's CFO reportedly drew no salary since 2020 and its MD earned just ₹17,000 a month on revenues of ₹7.7 lakh crore.
Key Takeaways
The ED raided nine premises of Rajesh Exports Limited in Bengaluru and Mumbai on 24 June 2025 over suspected FEMA violations.
The company allegedly failed to produce records of foreign transactions, including a claimed ₹1,035 crore investment in African Mines .
Suspicious trade set-offs with UAE -based and other overseas parties amount to approximately ₹3,000 crore , according to the ED.
Physical stock verification revealed a 40% discrepancy between factory register figures and actual inventory.
The CFO has received no salary since 2020 ; the MD was paid roughly ₹17,000/month despite revenues of ₹7.7 lakh crore .
Over ₹600 crore allegedly siphoned via share manipulation using NRI benamidars ; implicated names reportedly appear in ICIJ leaks.
The Directorate of Enforcement (ED) conducted search and seizure operations across nine premises of Rajesh Exports Limited (REL) in Bengaluru and Mumbai on 24 June 2025, as part of an ongoing probe into suspected violations of the Foreign Exchange Management Act (FEMA). The raids, which began on Tuesday, targeted the company and connected persons, with investigators seizing incriminating documents and digital evidence, according to an official ED statement.
Key Allegations Against Rajesh Exports
The ED's investigation has flagged multiple serious irregularities. The company allegedly failed to produce records of foreign transactions — including imports, exports, overseas investments, and the settlement of foreign trade receivables and payables — making it nearly impossible to verify the legitimacy of those dealings.
Among the specific red flags: contemporaneous documentation for a claimed investment of ₹1,035 crore into African Mines was neither found at the premises nor furnished by the company. Investigators also identified a suspected set-off of trade payables and receivables with parties based in the UAE and other overseas jurisdictions, with the amount involved estimated at approximately ₹3,000 crore, according to the ED.
Stock Discrepancy and Anomalous Pay Structures
Physical verification of inventory during the search uncovered a difference of roughly 40 per cent between stock recorded in factory registers and actual physical stock found on the premises — a discrepancy that investigators say warrants further scrutiny.
The company's internal compensation structure also raised concerns. The Chief Financial Officer (CFO) has reportedly received no salary since 2020, while the Managing Director (MD) was paid approximately ₹17,000 per month — despite Rajesh Exports reporting consolidated revenues of around ₹7.7 lakh crore. The ED characterised these figures as significant departures from normal commercial practice for a company of this scale.
ICIJ Links and Alleged Share Manipulation
The probe has also surfaced what the ED described as suspicious block trades in the scrip of Rajesh Exports, executed by individuals whose names reportedly appear in leaks published by the International Consortium of Investigative Journalists (ICIJ). This, investigators say, points to possible undisclosed offshore connections currently under examination.
Notably, the ED alleged that over ₹600 crore was siphoned out of India through share manipulation using so-called 'NRI benamidars' — a method involving nominees who hold assets on behalf of undisclosed beneficial owners, which is prohibited under Indian law.
What Happens Next
The seized documents and digital evidence are currently being examined by ED officials. The agency confirmed that further investigation remains in progress. This comes amid a broader enforcement push by the ED against large corporates suspected of FEMA contraventions, with several high-profile cases active across sectors. How Rajesh Exports responds to the findings — and whether the company provides the missing documentation — will likely determine the next phase of the probe.
Point of View
035 crore overseas investment, a 40% stock gap, a CFO without a salary for five years, and a managing director earning ₹17,000 a month on ₹7.7 lakh crore in revenues — is extraordinary even by the standards of high-profile enforcement actions. What is striking is not just the alleged quantum of suspicious transactions but the apparent absence of basic corporate governance controls. The ICIJ connection adds a cross-border dimension that could draw in foreign regulators. The real question is how long these anomalies went undetected by statutory auditors, stock exchange surveillance, and market regulators — and what that says about the oversight architecture around India's large listed companies.
NationPress
24 Jun 2026
Frequently Asked Questions
Why did the ED raid Rajesh Exports?
The ED raided Rajesh Exports Limited across nine premises in Bengaluru and Mumbai as part of an ongoing investigation into suspected violations of the Foreign Exchange Management Act (FEMA). Investigators flagged missing records of foreign transactions, suspicious overseas trade set-offs worth around ₹3,000 crore, and alleged share manipulation involving NRI benamidars.
What is the ₹3,000 crore transaction flagged by the ED?
The ED alleges that Rajesh Exports engaged in the set-off of trade payables and receivables with suspicious foreign parties based in the UAE and other overseas jurisdictions, with the total amount involved estimated at approximately ₹3,000 crore. Such set-offs, if unverified, can be used to move funds without triggering standard banking scrutiny.
What is the significance of the 40% stock discrepancy?
During the search, physical verification of inventory at Rajesh Exports' premises revealed that actual stock was roughly 40% lower than what was recorded in the company's factory registers. This kind of gap can indicate inflated asset reporting or diversion of goods, and is a key element of the ED's ongoing examination.
Who are NRI benamidars, and why does the ED's mention of them matter?
'NRI benamidars' refers to non-resident Indian nominees who hold shares or assets on behalf of undisclosed beneficial owners — a practice prohibited under the Benami Transactions (Prohibition) Act. The ED has alleged that over ₹600 crore was siphoned out of India through share manipulation using such proxies, with the implicated individuals reportedly named in ICIJ data leaks.
What happens next in the Rajesh Exports ED investigation?
The ED has confirmed that seized documents and digital evidence are being examined and that further investigation is ongoing. The company's response — particularly whether it can produce the missing foreign transaction records — will be a critical factor in determining the next steps, which could include arrests, attachment of assets, or a formal charge sheet under FEMA.
