ED searches Rajesh Exports premises over ₹3,000-cr dubious deals, gold mismatch

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The Enforcement Directorate (ED) on Tuesday carried out searches at nine premises linked to Rajesh Exports Ltd. (REL) in Bengaluru and Mumbai as part of an ongoing investigation, with officials examining suspected benami share transactions, discrepancies in gold inventory and questionable overseas transactions.

Search operations were still underway at the time of filing this report.

"Investigation conducted so far has revealed multiple transactions in the scrip of Rajesh Exports through benamidars. Preliminary findings indicate that over $20 million may have been siphoned out of the country through such transactions," an ED official said on condition of anonymity.

According to officials, search teams also detected a significant mismatch between the company's declared gold inventory and the physical stock available at the premises searched.

"Physical verification carried out during the searches has shown that the gold stock found was around 40% lower than the stock reflected in the books," the official said.

Investigators are also examining transactions involving nearly ₹3,000 crore of trade receivables that were allegedly adjusted against gold imports, the delivery of which is under scrutiny.

"We are examining a case where trade receivables of around ₹3,000 crore have been set off against gold imports whose delivery appears suspicious," the official said.

The Bengaluru-headquartered jeweller has been under scrutiny after the Securities and Exchange Board of India (Sebi) earlier this month alleged that the company misrepresented nearly all of its revenue over five financial years to FY25, amounting to ₹15.15 trillion.

Shares of the company hit the 5% upper circuit, closing at ₹108.25 apiece on the BSE on Tuesday, marking a sharp recovery from the 52-week low of ₹73.20 touched following the regulatory action.

Another issue under investigation relates to overseas direct investment (ODI) by the company in African gold mining assets.

"Rajesh Exports has ostensibly invested more than ₹1,000 crore in African gold mines. However, this investment is not reflected in the books of accounts of any of its subsidiaries and is therefore being examined," the official said.

The financial crime-fighting agency is also scrutinizing whether Rajesh Exports group firms are quietly adjusting mutual dues with UAE-based entities to hide the real movement of money.

"About ₹3,000 crore of trade receivables and trade payables appear to have been adjusted against four to five foreign entities based in the UAE that have dubious credentials. The nature and purpose of these transactions are being investigated," the official added.

The agency is expected to analyse documents, digital records and financial data seized during the searches before taking further action.

Emails sent to Rajesh Exports and the investigating agency remained unanswered till press time.

Regulatory action against Rajesh Exports by the enforcement directorate follows a 3 June interim order by Sebi. The 109-page ex-parte interim order alleged fund diversion, opaque related-party transactions, and inadequate disclosures about two companies—Elest Pvt Ltd and ACC Energy Storage Pvt Ltd—both related to Rajesh Exports.

The company was also selected to develop 5 gigawatt-hours worth of battery capacity, in exchange for government incentives on sales under the ₹18,100 crore production-linked scheme for advanced chemistry cells (PLI-ACC).

To be sure, no funds have been disbursed to any beneficiaries under this scheme as yet. Mint reported earlier that the ministry of heavy industries, which operates PLI-ACC, will take a call on Rajesh Exports' participation in the coming days.

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.

Manas is a New Delhi-based journalist with Mint, where he covers the intersection of economic policy, industry, and emerging sectors shaping India’s growth. He writes on government regulation, manufacturing, and the clean energy transition, with particular depth in areas such as electric mobility, battery ecosystems, and rare-earth supply chains. He has written on India’s efforts to build domestic capacity in electric vehicles and energy storage, as well as the broader push to reduce import dependence and strengthen supply chain resilience. His reports are not limited to capturing the headline; they also aim to explain complex policy simply.<br><br>Manas has studied law in Pune, the city where he grew up, followed by a business journalism diploma from the Asian College of Journalism in Chennai. In his almost two years of being a correspondent for Mint, Manas has reported as major wars unfolded, a general election brought surprises for both the ruling party and the Opposition, and three Union Budget announcements where India has charted its economic course for the days to come.<br><br>On vacation, Manas plays bass guitar with his friends in Space & Co, their jam-rock band. He also likes cats, and occasions of late-night snacking.

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