SFIO to probe Rajesh Exports over SEBI’s fraud allegations
The corporate affairs ministry ordered an SFIO investigation, according to people familiar with the matter.
The SFIO’s mandate is often to investigate complex corporate frauds.
Also Read: Rajesh exports under ED lens after investigation finds missing records and opaque transactions worth Rs 3,000 crore
Under Section 212 of the Companies Act 2013, the government may order an SFIO investigation after examining the reports of the company registrar or in the public interest.
Sebi, in an interim order dated June 3, alleged that Rajesh Exports had inflated its consolidated income for five years by attributing significant income to overseas subsidiaries, particularly Switzerland-based Valcambi SA, even though the subsidiary’s audited independent financial statements showed only a fraction of these amounts. The regulator also prohibited the promoter of the company from buying, selling or trading the company’s securities until further proceedings.
Speaking to ET, an official from Rajesh Exports denied any wrongdoing by the company: “There is no issue in this regard. It is just a matter of interpretation of the figures.” He added that the company expects to address all concerns in the coming days.
The move comes right after the Enforcement Directorate searched nine premises linked to the Bengaluru-based company under the Foreign Exchange Management Act (FEMA).
In a statement on Wednesday, the agency said the company’s key business indicators showed “significant” deviations from normal business practices, as well as a lack of records of foreign transactions.
Also Read: Rajesh Exports’ troubles deepen with ED searches amid Rs 15 lakh crore top line
He said Rajesh Exports had “failed” to provide documents related to its foreign transactions, including imports, exports, overseas investments and settlement of foreign trade receivables and payables, making it difficult to verify the authenticity of these transactions.
“For example, contemporaneous records and documentation of the alleged investment of ₹ 1,035 crore in African mines are yet to be located or provided by the company,” the agency said.
