The Enforcement Directorate's raid on the nine premises linked to to Rajesh Exports unearthed notable discrepancies regarding the salary of the senior executive management of the company, as mentioned by the organisation in a press release posted on 'X' on Wednesday.
The law enforcement body found that there was disproportionate financial compensation for the firm's senior management, as compared to the scale of the export company's operations. They also noted that Rajesh Exports' major business indicators differed prominently from normal commercial practices.
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The economic intelligence agency stated that the Chief Financial Officer (CFO) has not received a salary since 2020. The ED also uncovered that the company paid the Managing Director only Rs. 17,000 per month, a salary that does not seem to match a senior level executive position. This is contrasted with the company reporting a consolidated revenue of approximately Rs. 7.7 lakh crore.
Other violations that the ED discovered included missing records for overseas transactions, Rs. 3,000 crore in opaque trade set-offs, a 40% stock mismatch, and share-manipulation involving offshore benamidars.
The law enforcement body stated that investigation is ongoing. It stated that various incriminating documents and digital evidences had been seized and/or recovered.
The agency also found out that about Rs 3000 crore of trade receivables and that payables were set off against four to five foreign entities based in the UAE and overseas jurisdictions. The law enforcement agency had previously deemed them to have "dubious credentials."
The ED also found that the firm has ostensibly invested more than Rs 1,000 crores in African gold mines, with this investment not reflecting in the books of accounts of any of its subsidiaries.
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Its investigation also uncovered suspicious block trades in the stocks of the company executed by certain individuals whose names also showed up in the leaks released by the International Consortium of Investigative Journalists (ICIJ), pointing to likely undisclosed offshore links, which are under examination.
"For example, it was revealed that over Rs. 600 Crore were siphoned out of India through share-manipulation using NRI benamidars," the ED said.
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