Key Points:
ED reportedly raided 9 locations linked with Rajesh Mehta as part of a probe in financial irregularities.
Investigators are looking into transactions worth around ₹3,000 crore in which money owed to the company was allegedly used to settle payments for gold imports.
The reported raid comes weeks after SEBI released its 109-page interim order against Rajesh Export in early June.
ON TUESDAY, JUNE 23, 2026, the Enforcement Directorate (ED) carried out searches at nine locations linked to the Bengaluru-based gold and jewelry giant Rajesh Mehta, as part of a widening probe into alleged financial irregularities. According to Mint, Officials are searching premises in Bengaluru and Mumbai, focusing on suspected benami share transactions, dubious overseas dealings, discrepancies in gold inventory, and transactions involving nearly ₹3,000 crore in trade receivables.
Search operations were still underway at the time the officials spoke to Mint. According to the report, preliminary findings suggest that more than $20 million (₹189 Crore) may have been siphoned out of India through transactions involving alleged benami entities trading in Rajesh Exports shares.
"Investigation conducted so far has revealed multiple transactions in the scrip of Rajesh Exports through benamidars. Preliminary findings indicate that over $20 million may have been siphoned out of the country through such transactions," an anonymous ED official said to Mint.
One of the most significant findings during the raids relates to the company's gold inventory.
According to officials involved in the investigation, as per Mint, the raids conducted found a substantial gap between the gold stock available at the premises and the quantity recorded in company books.
"Physical verification carried out during the searches has shown that the gold stock found was around 40% lower than the stock reflected in the books," an official said to Mint.
Investigators are also looking into transactions worth around ₹3,000 crore in which money owed to the company was allegedly used to settle payments for gold imports. However, officials suspect that some of the gold shipments may not have actually been delivered despite records claiming they were.
"We are examining a case where trade receivables of around ₹3,000 crore have been set off against gold imports whose delivery appears suspicious," an official said to Mint.
The agency is also probing whether Rajesh Exports group firms used to deal with several UAE-based companies to conceal the real flow of money. Officials said transactions worth nearly ₹3,000 crore were adjusted against four to five UAE-based firms, whose credentials are now under the scanner. “The nature and purpose of these transactions are being investigated," the official added.
Another major focus area during the ED raid is Rajesh Exports' overseas direct investment in African gold mining assets.
According to the reported ED raid, the company appears to have invested more than ₹1,000 crore in African gold mines. However, officials claim that these investments are not reflected in the books of accounts of any of the company's subsidiaries.
"Rajesh Exports has ostensibly invested more than ₹1,000 crore in African gold mines. However, this investment is not reflected in the books of accounts of any of its subsidiaries and is therefore being examined," an official said to Mint.
The agency is expected to analyse documents, digital records, and financial data seized during the searches before deciding on further action. Emails sent to both Rajesh Exports and the ED reportedly remained unanswered.
The Enforcement Directorate raid comes less than a month after the Securities and Exchange Board of India (SEBI) issued a 109-page ex-parte interim order against Rajesh Mehta's company on June 3.
In that order, SEBI alleged that Rajesh Exports had misrepresented nearly all of its reported revenue over five financial years from FY21 to FY25, amounting to ₹15.15 lakh crore.
The controversy has also sparked questions over the company's role in the Central government’s ₹18,100-crore Production Linked Incentive (PLI-ACC) scheme for advanced chemistry cell battery manufacturing. Rajesh Exports had been selected to develop 5 gigawatt-hours of battery manufacturing capacity under the scheme. However, sources close to Mint have indicated that the Ministry of Heavy Industries is expected to take a call on the company's continued participation in the programme in the coming days.
Despite the enforcement action and regulatory scrutiny, Rajesh Exports shares hit the 5% upper circuit on Tuesday and closed at ₹108.25 on the BSE, recovering sharply from the 52-week low of ₹73.20 recorded after SEBI's action earlier this month. Overall the share price is down by 54% in the last six months.
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