The Congress on Friday (June 5, 2026) questioned why economic offences investigating agencies such as the Enforcement Directorate (ED) and the Serious Fraud Investigation Office (SFIO) among others failed to act over alleged financial irregularities at Rajesh Exports, a jewellery company, after interim findings by the Securities and Exchange Board of India (SEBI) pointed to one of the biggest case of financial misrepresentation in India’s corporate history.
Addressing a press conference, Congress media and publicity department chairman Pawan Khera said the findings exposed not only irregularities in reported revenues of about ₹15.15 lakh crore but exposed serious weaknesses in the government’s regulatory oversight. It reflected the dangers of a “crony capitalist model”, Mr. Khera added.
Calling the findings a “damning indictment” of the government’s regulatory architecture, Mr. Khera questioned why agencies such as the ED, SFIO, the Central Bureau of Investigation (CBI), and the Financial Intelligence Unit (FIU) had failed to act despite the scale of the alleged irregularities.
“Why did the ED that works 24x7 against Opposition not raise any red flag?” Mr. Khera asked. He also wondered why SEBI took seven months to act on a complaint.
Citing the regulator’s interim order, Mr. Khera said 97% to 99% of the company’s reported revenues during the period originated from overseas subsidiaries and step-down subsidiaries.
He added that SEBI’s probe focused on Valcambi SA, described by Rajesh Exports as its principal operating business, and had found significant discrepancies between revenues reported by the subsidiary and those reflected in the group’s consolidated accounts.
Mr. Khera further claimed that SEBI investigators and forensic auditors were denied full access to transaction records, customer and supplier data, inventory details and other key documents. He said the regulator had rejected the company’s argument that Swiss confidentiality laws prevented disclosure of information.
Alleging a massive erosion of investor wealth, Mr. Khera said ordinary shareholders had suffered substantial losses as the company’s market capitalisation fell sharply over the past three years. He demanded accountability from the Centre if the alleged irregularities were established.
Published - June 05, 2026 10:22 pm IST
Indian National Congress / business (general) / fraud / crime
Source: The Hindu - India News
