The Enforcement Directorate has outlined multiple financial irregularities at gold jewelry company M/s Rajesh Exports Limited. The findings stem from an investigation under the Foreign Exchange Management Act, 1999, following searches at nine sites in Bengaluru and Mumbai.
The company did not supply required records for imports, exports, and foreign investments, preventing verification of cross-border transactions. It also lacked supporting documents for a claimed Rs 1,035 crore investment in African mines and conducted unclear overseas dealings worth about Rs 3,000 crore by offsetting payables against receivables with entities in the UAE and other jurisdictions.
The probe noted unusual compensation practices. Despite reporting consolidated revenue near Rs 7.7 lakh crore, the chief financial officer received no salary since 2020, while the managing director was paid Rs 17,000 monthly.
Physical checks revealed a 40 percent shortfall in gold stock compared to company registers. Investigators also found evidence of suspected capital outflows exceeding Rs 600 crore through share trades involving non-resident proxy holders named in prior leaks. Digital records and documents were seized, and the inquiry continues.
