The Directorate of Enforcement (ED) on Wednesday said searches at premises linked to Rajesh Exports Ltd (REL) in Bengaluru and Mumbai have unearthed multiple suspected violations under the Foreign Exchange Management Act (FEMA), including missing records of overseas transactions, around Rs 3,000 crore in opaque trade set-offs, a 40% stock mismatch and alleged share manipulation involving offshore benamidars.
The ED said it conducted search and seizure operations at nine premises on June 23 in connection with an ongoing investigation into Rajesh Exports and connected persons for suspected contraventions of FEMA provisions.
Also read: Rajesh Exports' troubles deepen with ED searches amid Rs 15 lakh crore revenue row
According to the agency, REL "failed to produce documentation in respect of its foreign transactions, including its imports, exports, overseas investments and the settlement of foreign trade receivables and payables, thereby rendering verification of the genuineness of such transactions almost impossible."
The agency said that contemporaneous records and documentation relating to a claimed investment of Rs 1,035 crore in African mines "were neither found nor provided by the company as yet".
