Bengaluru, June 23 (IANS) The Enforcement Directorate (ED) on Tuesday carried out searches at multiple locations linked to Rajesh Exports Limited in Bengaluru, with raids also conducted in Mumbai.
The action comes amid increasing regulatory scrutiny of the company following a recent Securities and Exchange Board of India (SEBI) order that raised concerns about Rajesh Exports’ financial reporting practices.
SEBI, citing findings from a forensic review, alleged that the company may have significantly overstated revenues through transactions involving related entities.
The suspected misstatement was estimated at around Rs 15.15 lakh crore, with interim restrictions imposed on Chairman Rajesh Mehta from trading in the company’s securities.
According to sources, ED officials launched coordinated searches early in the day at premises associated with the company and its promoters. The operations were continuing at several locations when this report was filed.
While the agency has not yet issued an official statement, sources indicated that the action is linked to ongoing investigations into the company’s financial affairs.
The development comes shortly after SEBI issued an interim order against Rajesh Exports, its Chairman Rajesh Mehta, and certain related entities. In its order, the market regulator alleged serious discrepancies in the company’s financial reporting and raised concerns over fund flows involving associated entities.
Officials familiar with the matter said the ED searches are part of efforts to gather documents and evidence related to the allegations flagged by SEBI. However, details of the material seized or the specific scope of the investigation were not immediately available.
Rajesh Exports has not yet issued a public response to the ED action.
Further details are awaited as the investigation progresses.
–IANS
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