Rajesh Exports' woes deepen with ED searches

The Enforcement Directorate on Tuesday conducted searches against Rajesh Exports which is facing scrutiny from market regulator Sebi over alleged financial irregularities, official sources said.

The action is understood to have been taken under the Foreign Exchange Management Act (FEMA) at the Bengaluru-headquartered company.

Premises in Bengaluru and Mumbai linked to the company are being covered, they said.Also read: Inside Sebi's Rs 15.15 lakh crore revenue inflation allegations against Rajesh Exports Rajesh Exports Ltd allegedly inflated its consolidated revenues by more than Rs 15 lakh crore over five years by attributing massive revenues to overseas subsidiaries, particularly Switzerland-based Valcambi SA, despite the subsidiary's audited standalone financial statements showing only a fraction of those amounts, according to an interim order by Sebi.

The regulator has restrained the company's Chairman and Managing Director, Rajesh Mehta, from buying, selling or dealing in securities of Rajesh Exports, either directly or indirectly, until further orders.

Rajesh Exports has denied any financial irregularities, saying its reported revenues were correct and that there seemed to be a communication gap between the markets regulator and the firm. ...