Why did ED, CBI fail to raise red flags over alleged irregularities of Rajesh Exports, asks Congress

The Congress connected Friday (June 5, 2026) questioned wherefore economical offences investigating agencies specified arsenic the Enforcement Directorate (ED) and the Serious Fraud Investigation Office (SFIO) among others failed to enactment implicit alleged fiscal irregularities astatine Rajesh Exports, a jewellery company, after interim findings by the Securities and Exchange Board of India (SEBI) pointed to 1 of the biggest case of fiscal misrepresentation successful India’s firm history.

Addressing a property conference, Congress media and publicity section president Pawan Khera said the findings exposed not lone irregularities successful reported revenues of astir ₹15.15 lakh crore but exposed superior weaknesses successful the government’s regulatory oversight. It reflected the dangers of a “crony capitalist model”, Mr. Khera added.

‘Damning indictment’

Calling the findings a “damning indictment” of the government’s regulatory architecture, Mr. Khera questioned wherefore agencies specified arsenic the ED, SFIO, the Central Bureau of Investigation (CBI), and the Financial Intelligence Unit (FIU) had failed to enactment contempt the standard of the alleged irregularities.

“Why did the ED that works 24x7 against Opposition not rise immoderate reddish flag?” Mr. Khera asked. He besides wondered wherefore SEBI took 7 months to enactment connected a complaint.

SEBI probe

Citing the regulator’s interim order, Mr. Khera said 97% to 99% of the company’s reported revenues during the play originated from overseas subsidiaries and step-down subsidiaries.

He added that SEBI’s probe focused connected Valcambi SA, described by Rajesh Exports arsenic its main operating business, and had recovered important discrepancies betwixt revenues reported by the subsidiary and those reflected successful the group’s consolidated accounts.

Mr. Khera further claimed that SEBI investigators and forensic auditors were denied afloat entree to transaction records, lawsuit and supplier data, inventory details and different cardinal documents. He said the regulator had rejected the company’s statement that Swiss confidentiality laws prevented disclosure of information.

Alleging a monolithic erosion of capitalist wealth, Mr. Khera said mean shareholders had suffered important losses arsenic the company’s marketplace capitalisation fell sharply implicit the past 3 years. He demanded accountability from the Centre if the alleged irregularities were established.