Pramesh S Jain
conducted search and seizure operations at nine locations in Bengaluru and Mumbai in connection with an ongoing investigation into Rajesh Exports Limited (REL) for alleged contraventions of the Foreign Exchange Management Act (FEMA),1999.
According to a press release issued on Wednesday,the searches began on June 23 and covered premises linked to the company and associated persons.
The investigation has uncovered several alleged irregularities involving foreign transactions,stock records,management remuneration, and suspected share manipulation.
The ED said the company failed to produce documentation relating to its foreign transactions, including imports,exports,overseas investments,and settlement of foreign trade receivables and payables.
Investigators claimed that records relating to an alleged investment of Rs.1,035 crore in African mining ventures were neither found during the searches nor provided by the company.
Another key issue flagged by the agency concerns the set-off of foreign trade receivables against foreign trade payables amounting to around Rs 3,000 crore.
The ED alleged that these transactions involved suspicious overseas entities based in the United Arab Emirates and other foreign jurisdictions.
During physical verification at the company’s premises, officials reportedly found a stock discrepancy of nearly 40 per cent between inventory recorded in factory registers and the actual stock available.
The investigation has also raised questions about the remuneration paid to senior management.
According to the ED,the company’s Chief Financial Officer has not received a salary since 2020, while the Managing Director was paid approximately Rs.17,000 per month despite the company reporting consolidated revenues of around Rs.7.7 lakh crore.
The agency further alleged that suspicious block trades were executed in the company’s shares by certain individuals whose names appeared in leaks published by the International Consortium of Investigative Journalists (ICIJ).
The ED said the transactions indicate possible undisclosed offshore links that are under examination.
Investigators also alleged that more than Rs.600 crore was siphoned out of India through share-manipulation involving non-resident Indian (NRI) benamidars.
During the searches,officials seized various documents and digital evidence,which are currently being examined.
Eom…
