Rajesh Exports repays ₹510 crore to Canara Bank after DRT order
Bengaluru-based gold and jewellery exporter Rajesh Exports has repaid ₹510 crore in dues to Canara Bank following a Debt Recovery Tribunal order, averting a sale of its properties. The company had defaulted in 2020 and remains under SEBI scrutiny over alleged financial misrepresentation.
What happened
Rajesh Exports repaid ₹510 crore owed to Canara Bank after a DRT order, averting sale of its properties. The Bengaluru-based gold and jewellery exporter had
Key facts
- ₹510 crore
- 2020
- 2021
- ₹3,000 crore
Why this matters
While the repayment stabilizes Rajesh Exports’ near-term balance-sheet position, potential partners or acquirers should require rigorous financial and regulatory due diligence before pursuing any transaction.
What to watch
- Canara Bank confirmation of full settlement, release of collateral and closure of recovery actions.
- SEBI notices, interim orders, investigation updates or enforcement action related to alleged financial misrepresentation.
- Audited results showing operating cash flow, debt levels, interest costs, receivables and inventory movements.
- Any fresh defaults, overdue creditor claims, rating actions or new DRT/NCLT filings.
- Changes in promoter pledges, auditor remarks, board or senior-management departures, and related-party transaction disclosures.
- Seek formal closure, release of security and withdrawal or disposal of relevant DRT recovery proceedings with Canara Bank.
- Issue disclosures clarifying the source of repayment, remaining secured debt, contingent liabilities and status of other creditor exposures.
- Prioritize audited financial reporting and detailed responses to regulatory queries to limit further governance damage.
- Preserve liquidity through working-capital controls, asset monetization or refinancing rather than aggressive expansion.
- Engage major suppliers, bullion counterparties and lenders to prevent tighter credit terms following the prior default.