Enforcement Directorate teams fanned out across Bengaluru early in the morning and searched several premises linked to Rajesh Exports and its promoters. The searches came days after the Securities and Exchange Board of India (Sebi) passed an interim order accusing the company of serious irregularities in its financial reporting and fund flows. Moneycontrol first reported the searches.
Officials have not confirmed which legal provisions the searches fall under. The ED’s searches are understood to be tied to the issues in Sebi’s order. The agency typically checks whether violations disclosed by another regulator also point to offences under laws on money laundering and proceeds of crime. Republic World reported that its teams are examining financial records and transaction trails involving the company and its promoters.
What Sebi alleged
Sebi’s order runs 109 pages and was issued ex-parte, meaning without a hearing for the company. It alleges that Rajesh Exports, chairman Rajesh Mehta and several related entities built layers of transactions that hid how money actually moved, making it hard to tell where funds came from and where they ended up.
One finding involves Mehta’s personal account. Between April 2020 and September 2025, Sebi said, the company sent ₹338.90 crore to that account and received ₹232.44 crore back. The company produced no loan agreements, board approvals or other papers to justify the routing. Its own admission that funds were routed without revealing their original source pointed, Sebi said, to prima facie intentional layering and concealment.
The largest number is ₹15.15 lakh crore. Sebi alleges the company misstated its financial statements by about that amount by recording circular transactions again and again. The regulator stressed that this is the cumulative value of allegedly misstated entries, not money that changed hands. The same transactions were run through multiple entities, Sebi alleged, inflating both revenue and purchase figures.
Republic World’s account adds that Sebi claims nearly 99% of reported consolidated revenue between FY21 and FY25 lacked verifiable supporting documents. It also lists allegations that funds were siphoned through promoter-linked accounts and used for unauthorized personal derivative trading, and that both the company and its statutory auditors failed to provide essential transaction records and subsidiary data, stalling the forensic audit.
Sebi said such accounting may have misled investors about the company’s scale and financial health. Pending a detailed investigation, it placed interim restrictions on the company, its promoters and certain associated entities.
The company’s response
Rajesh Exports maintains that the order is interim and not a final finding of wrongdoing. Promoters have called the discrepancies a “communication gap” over accounting standards and have agreed to cooperate with the investigations. Its market valuation has swung sharply, hitting 52-week lows after the regulatory action.
Sources
- ED Raids Rajesh Exports in Bengaluru Days after Sebi's ₹15.15 Lakh Cr Fraud Findings – Outlook Business
- ED Searches Rajesh Exports Premises in Bengaluru: SEBI Probe Intensifies
