Rajesh Exports shares hit lower circuit for second consecutive day after ED probe; check details

According to the ED, search and seizure operations under the Foreign Exchange Management Act (FEMA), 1999, were carried out starting from June 23, 2026, as part of an ongoing investigation into Rajesh Exports and its associates for suspected violations of FEMA provisions.

In a statement after the searches, the central agency said that Rajesh Exports failed to provide records of its foreign transactions, including imports, exports, overseas investments, and settlement of trade receivables and payables, making it difficult to verify the genuineness of these transactions.

The agency added that the Bengaluru-based firm failed to provide documents related to the company’s claimed investment of ₹1,035 crore in African mines.

ED also said that Rajesh Exports was involved in setting off foreign trade receivables against payables worth around ₹3,000 crore. According to the agency, these transactions were carried out with suspicious overseas entities based in the UAE and other jurisdictions.

Stock gap and suspicious block trades

The agency further added that a physical stock verification during the search revealed a mismatch of around 40% between the inventory recorded in the company’s factory registers and the actual stock found at its premises.

The investigation has uncovered suspicious block trades in Rajesh Exports' shares as well. ED in its statement noted that some individuals involved are also named in leaks by the International Consortium of Investigative Journalists, pointing to possible undisclosed offshore links that are currently under examination.

“For example, it was revealed that over ₹600 crore were siphoned out of India through share manipulation using NRI benamidars,” ED said.

Remuneration of senior management

During the search, Rajesh Exports has also shown unusual financial patterns, with key business indicators deviating from standard commercial practices, the central agency flagged.

The remuneration of senior management was found to be disproportionately low compared to the scale of its operations. The investigation revealed that the company’s Chief Financial Officer (CFO) has not received any salary since 2020, while the Managing Director (MD) was paid only around ₹17,000 per month, despite the firm reporting consolidated revenue of about ₹7.7 lakh crore.

During the search, ED said various incriminating documents and digital evidence have been seized and recovered, which are being further examined.

Clarification sought

Following ED’s statement, both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have sought clarification from Rajesh Exports. Till the time of publishing the article, the company had not issued any official statement.

The gold refining and jewellery manufacturing firm came under enhanced scrutiny following SEBI's allegation of a massive financial fraud. The market regulator had alleged that the company had a suspected consolidated revenue inflation of up to ₹15.15 lakh crore for the 2020-21 to 2024-25 fiscal years.

As of June 25, 2026, Rajesh Exports has a total market capitalisation of ₹2,864.61 crore.