ED raids Rajesh Exports: MD on ₹17,000/month salary atop ₹7.7 lakh crore revenue empire
Enforcement Directorate searched nine premises of the Bengaluru gold-jewellery major after SEBI flagged ₹15.15 lakh crore in alleged revenue inflation via overseas subsidiaries. SFIO probe and fresh forensic audit ordered; shareholders have lost ₹12,726 crore as LIC holds 10.8%.
What happened
ED raided gold-jewellery firm Rajesh Exports across nine premises, finding MD paid just ₹17,000/month against ₹7.7 lakh crore revenue. SEBI alleges ₹15.15 lakh
Key facts
- ₹17,000 monthly MD salary
- ₹7.7 lakh crore revenue
- ₹15.15 lakh crore alleged inflation
- ₹3,000 crore trade receivables
- ₹1,035 crore Africa mining investment
- ₹12,726 crore shareholder erosion
- 10.8% LIC stake
Why this matters
Any M&A, JV, or supply-chain exposure to Rajesh Exports' overseas subsidiary network warrants immediate diligence reset until the forensic audit clarifies which revenue streams are real.
What to watch
- SFIO interim report filing in NCLT
- Q3 results deferral or auditor resignation
- LIC stake reduction disclosure below 10% threshold
- Credit rating action by CRISIL/ICRA on debt instruments
- Promoter pledge disclosures and margin calls
- Customs/DRI parallel probe announcement on export realisations
- Track LIC's disclosure response and any block-deal exit attempts
- Map exposure of SBI, PNB and consortium banks to Rajesh Exports gold metal loans
- Compare reported revenue vs GJEPC export data and customs filings for triangulation
- Monitor peer jewellery stocks (Titan, Kalyan, Senco) for sympathy moves or share-gain narrative
- Identify auditor (Sundaram & Srinivasan) liability and ICAI referral probability