ED Raids Rajesh Exports in Bengaluru; Agency Expands Probe After SEBI’s Fraud Allegations

The Enforcement Directorate (ED) has launched search operations at multiple premises linked to Rajesh Exports in Bengaluru. The action follows a recent SEBI interim order that flagged massive alleged financial irregularities, including an overstated revenue of ₹15.15 lakh crore. The agency is currently examining financial records and transaction trails involving the company and its promoters.

Sources confirmed that search teams have been stationed at company-linked locations since early Wednesday morning. The investigation seeks to uncover evidence of money laundering and potential fund diversion, building upon the findings outlined in the Securities and Exchange Board of India’s (SEBI) recent 109-page interim order.

SEBI Allegations

In its June 2026 order, SEBI alleged a series of non-genuine transactions and corporate governance failures at the jewellery major. Key points of contention include:

• Claims that nearly 99% of reported consolidated revenue (amounting to ₹15.15 lakh crore) between FY21 and FY25 lacked verifiable supporting documentation.
• Allegations that company funds were siphoned through promoter-linked accounts and used for unauthorized personal derivative trading.
• The regulator noted that both the company and its statutory auditors failed to provide essential transaction records and subsidiary data, stalling the forensic audit process.

Rajesh Exports Stance 

Rajesh Exports has maintained that the SEBI order is interim and does not represent a final determination of wrongdoing. Promoters have called the discrepancies as a "communication gap" regarding accounting standards and have agreed to cooperate with ongoing investigations. However, the company’s market valuation has faced extreme volatility, hitting 52-week lows following the regulatory crackdown.

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