Rajesh Exports shares declined another 5% to hit the lower circuit at Rs 97.02 on the NSE on Thursday, extending their recent slide after the Enforcement Directorate (ED) alleged irregularities in the company's foreign exchange transactions under the Foreign Exchange Management Act (FEMA).
The latest selloff comes after the ED said the gold refiner and jewellery exporter had deviated from standard commercial practices and was unable to furnish key documents linked to imports, exports, overseas investments and foreign trade settlements.
A day after conducting searches at multiple company locations in Bengaluru and Mumbai, the agency said the absence of supporting records had hampered its ability to verify the authenticity of several cross-border transactions.
The searches covered nine premises and followed a Securities and Exchange Board of India (SEBI) accounting probe, which reportedly alleged that Rajesh Exports overstated its consolidated revenue by ₹15.15 lakh crore between FY21 and FY25, largely through its Swiss subsidiary, Valcambi.
The ED also said investigators found a significant discrepancy between the company's recorded inventory and the physical gold stock available at its manufacturing facilities. According to the agency, the physical stock was around 40% lower than the quantity reflected in the company's books.
Apart from examining possible FEMA violations, the investigation is also looking into alleged irregularities related to the capital markets.
Rajesh Exports has not issued a response to the ED's allegations so far.
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