Rajesh Exports faces ED raids in Bengaluru
What's the story
The Enforcement Directorate (ED) has launched a massive raid at multiple locations linked to Rajesh Exports Limited in Bengaluru. The action comes after the Securities and Exchange Board of India (SEBI) issued an interim order against the company, its chairman and managing director Rajesh Mehta, and other related parties. The SEBI order had flagged serious irregularities in financial reporting and fund flows by Rajesh Exports.
Allegations
SEBI's allegations against Rajesh Exports
SEBI has accused Rajesh Exports of creating multiple layers of transactions with related entities to obscure the true nature of fund movement. The market regulator said these transactions were structured in a way that made it difficult to trace the ultimate source and destination of money, raising concerns over the transparency of the company's financial statements.
Missing documents
Company routed funds through Mehta's personal bank account: SEBI
SEBI found that Rajesh Exports failed to provide loan agreements, board approvals or other documents to justify routing company funds through Mehta's personal bank account. The regulator said the company's own admission that funds were routed without revealing their original source pointed to prima facie intentional layering and concealment of fund trails. Between April 2020 and September 2025, the company transferred ₹338.90 crore to Mehta and received ₹232.44 crore back.
Revenue inflation
Rajesh Exports allegedly inflated revenues by ₹15 lakh crore
In its interim order, SEBI alleged that Rajesh Exports inflated its consolidated revenues by over ₹15 lakh crore over five years. This was allegedly done by attributing massive revenues to overseas subsidiaries, especially Switzerland-based Valcambi SA. However, the subsidiary's audited standalone financial statements showed only a fraction of those amounts. The regulator has barred Mehta from buying, selling or dealing in securities of Rajesh Exports until further orders.