Rajesh Exports shares hit 5% lower circuit after ED Uncover 40% Gold Inventory Mismatch

Rajesh Exports shares hit 5% lower circuit following a nationwide regulatory search operation by a financial crime fighting agency

On June 24, 2026, shares of Rajesh Exports Limited (REL), a gold refining and jewelry manufacturing company headquartered in Bengaluru, fell by 5%. This sharp decline locked the stock at the daily lower circuit limit of ₹102.12 per share on the National Exchange. This market decline came immediately after a coordinated raid by a federal enforcement agency on several corporate properties.

The equity has been under prolonged selling pressure for the past several months. Market data shows that the stock has lost 9% of its value in just one month, with a staggering 54% decline in the past six months. This latest decline was directly triggered by live enforcement action at the firm’s locations.

The Enforcement Directorate (ED) conducted a large-scale search operation at nine different locations on Tuesday, June 23, 2026. Investigators targeted specific properties and offices in Mumbai and Bengaluru. The agency initiated the operation under the legal provisions of the Foreign Exchange Management Act (FEMA) after India’s market watchdog raised serious regulatory red flags.

The investigation focuses on suspected foreign exchange violations, capital flight, and complex share manipulation. Officials stated that many equity transactions involving the company’s shares were conducted through proxy holders, or “benamidars,” to conceal the true identities of the owners. The agency’s preliminary investigation indicates that more than $20 million was illegally transferred out of the country through these proxy networks.

During the physical verification process at the raid site, investigators discovered a significant discrepancy of 40% in the physical inventory. The firm’s actual physical gold stock was significantly less than the total amount disclosed in its corporate account books.

The investigating agency is also closely examining trade receivables worth approximately ₹3,000 crore. These receivables were allegedly written off or adjusted against alleged gold imports. However, officials described the actual delivery tracking of these gold imports as highly suspect, suggesting that the actual trade activity may have been entirely fabricated.

The financial investigation extends beyond domestic operations to offshore investments and suspicious intermediate shell companies. The agency discovered that Rajesh Exports allegedly invested over ₹1,000 crore in gold mining ventures across Africa. Surprisingly, these large capital expenditures are not reflected in the audited books of any of the company’s official subsidiaries.

Additionally, investigators discovered an additional ₹3,000 crore in trade receivables and payables that were quietly offset against four to five foreign entities based in the United Arab Emirates (UAE). The agency stated that the credentials of these foreign entities are highly suspicious, and they are investigating whether these arrangements were made to conceal the actual fund movement.

The company’s response to the recent raids is still awaited. However, founder and chairman, Rajesh Mehta, had previously denied any fund diversion or fraudulent activity, and said the group would fully cooperate with the forensic audit.