Shares of gold refiner and jewellery exporter Rajesh Exports are under significant pressure and hit a lower circuit for the third consecutive day on Friday, June 26, 2026. The stock fell 4.96% to hit the lower circuit limit of ₹97.75 on the BSE, while at the National Stock Exchange (NSE), it tumbled 4.99% to ₹97.02. The market capitalisation of the company dropped to ₹2,886.17 crore during this decline. The fall in share price began yesterday and comes after a strong gain in the past seven trading sessions, rallying over 40%. While the stock has underperformed the sector by 3.72%, it is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The Enforcement Directorate concluded its search at Rajesh Exports premises on June 25, with the company confirming that no discrepancies were found in inventory or cash during the operation. According to the company's exchange filing, officials fully cooperated with the authority and provided all details sought during the search. The company stated that no valuable items were seized during the operation. This development comes after the ED's allegations on June 24 that the company's key business indicators showed 'significant' departures from normal commercial practices, in addition to non-availability of records related to foreign transactions. The federal agency had conducted searches against the Bengaluru-based company and persons linked to it on June 23 for suspected contravention of the Foreign Exchange Management Act (FEMA).
The Enforcement Directorate identified at least five issues against Rajesh Exports Ltd (REL) and recovered various 'incriminating' documents and digital devices during the searches. The ED alleged that over ₹600 crore was siphoned out of India through share manipulation using NRI benamidars, with 'suspicious' block trades in the company's scrip executed by individuals whose names appear in leaks released by the International Consortium of Investigative Journalists (ICIJ). The agency claimed that the company's 'key business indicators' showed significant departures from normal commercial practices, including unusually low remuneration to senior management. The chief financial officer has not received any salary since 2020, while the managing director was paid only about ₹17,000 per month, despite the company reporting consolidated revenue of approximately ₹7.7 lakh crore. The ED also found the company was engaged in setting off trade payables and trade receivables from suspicious foreign parties based in UAE and other overseas jurisdictions. Additionally, physical verification during the search revealed around a 40% difference between inventory recorded in factory registers and the stock found at the premises.
Founder and Chairman of the company, Rajesh Mehta, denied any fund diversion or wrongdoing and stated that the company will fully cooperate with the fresh forensic audit ordered by the Securities and Exchange Board of India (SEBI) and not challenge the market regulator's interim order against it. According to the ED, the company 'failed' to produce documentation regarding its foreign transactions, including imports, exports, overseas investments and settlement of foreign trade receivables and payables, which rendered verification of the genuineness of such transactions almost impossible. The agency claimed that 'contemporaneous records and documentation' of the claimed investment of ₹1,035 crore into African mines were neither found nor provided by the company. The action by the central agency came against the backdrop of the SEBI's allegation of a massive financial fraud in Rajesh Exports, with the market regulator recently alleging that the company had suspected consolidated revenue inflation of up to ₹15.15 lakh crore for the 2020-21 to 2024-25 fiscal years.
