ED Conducts Searches At 13 Locations In ₹1,400 Crore Foreign Remittance Case Linked To Rajeshwar Exports

Mumbai, April 22: The Enforcement Directorate (ED) on Tuesday conducted searches at 13 locations across Maharashtra, Delhi, and Andhra Pradesh in connection with a money laundering probe involving alleged illegal foreign remittances of over Rs 1,400 crore linked to M/s Rajeshwar Exports Pvt Ltd and its promoters.

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Search operations across states

The searches, conducted under the Prevention of Money Laundering Act (PMLA), covered nine locations in Maharashtra, two in Delhi, and two in Andhra Pradesh, targeting premises of alleged beneficiaries, bullion traders, key operators, and cooperative credit societies suspected to be part of a network used to siphon funds abroad. Officials said several incriminating documents and digital devices were seized during the searches.

Origin of probe

The probe originates from an FIR registered at N M Joshi Marg police station in Mumbai against Ritesh Amritlal Jain and others for alleged criminal conspiracy and cheating. According to the ED, the accused created a web of shell companies and dummy firms to launder money overseas under the guise of legitimate import-export transactions.

Structured laundering mechanism

The agency said its probe has uncovered a “structured and multi-layered” laundering mechanism. Funds were allegedly routed through cooperative credit societies, bullion traders, and intermediary entities before being layered across multiple shell companies to conceal their origin. These funds were eventually channelled into bank accounts of Rajeshwar Exports Pvt Ltd, which the agency claims functioned as the main conduit for sending money overseas through over-invoiced imports and fictitious exports.

Large-scale remittances flagged

According to officials, during the financial year 2016-17 alone, more than Rs 1,400 crore was routed through the company’s accounts and remitted to overseas entities based in Hong Kong, Dubai, and Thailand. The ED has also found that export proceeds worth over Rs 1,478 crore remain unreleased, indicating that many of the transactions may have existed only on paper without any genuine business activity.

Seizures and dummy entities

During the searches, the agency seized several incriminating documents, digital devices, and financial instruments. These included rubber stamps, original PAN cards, photographs, and blank signed cheque books, which investigators believe were used to create and operate shell entities. The ED alleged that multiple individuals were used as dummy directors or name lenders for nominal payments, while the actual control of these entities remained with Jain.

The investigation further revealed that multiple individuals were enrolled as members of cooperative credit societies and bank accounts were opened in their names. These accounts were allegedly used to deposit cash in a structured manner before transferring the funds to shell entities linked to Jain and routed abroad. The agency estimates that around Rs 200 crore was routed through such cooperative societies.

Role of bullion traders

The investigation has also highlighted the role of bullion traders, whose transactions were allegedly used as a front to facilitate fund movement. Officials said invoices recovered during searches appear to be non-genuine and unsupported by actual movement of goods, pointing to the use of accommodation entries to lend legitimacy to fraudulent transactions. More than Rs 250 crore is suspected to have been transferred by such traders to entities linked to the accused.

Case background and legal developments

The ED had earlier attached assets worth Rs 58.16 crore in the case and filed a prosecution complaint before a special PMLA court.

The case traces back to the post-demonetisation period of 2016, when enforcement agencies began probing suspicious high-value transactions in the diamond trade. Investigators alleged that entities linked to Ritesh Amritlal Jain, including M/s Rajeshwar Exports Pvt Ltd, were part of a network that used overvaluation of diamond imports and fictitious export entries to move over Rs 1,400 crore in illicit funds to offshore hubs such as Hong Kong and Dubai.

The alleged modus operandi involved routing large volumes of cash, suspected to be unaccounted money generated during the demonetisation phase, through multiple bank accounts and shell companies before remitting it overseas under the guise of legitimate trade. Earlier ED findings had flagged that diamonds imported at inflated prices were used as a cover for outward remittances, while several export proceeds remained unreleased, raising doubts over the genuineness of the transactions. The agency has maintained that the case reflects a classic instance of trade-based money laundering, with the diamond sector used as a front.

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The ED had earlier attached assets worth Rs 58.16 crore in the case and filed a prosecution complaint before a special PMLA court. Officials said Jain has been a "person of interest" since late 2016. While he was intercepted at Mumbai airport in 2020 upon his return from Dubai, he has sought various legal reliefs. His legal status is defined by a 2019 Supreme Court stay that has protected him from immediate custodial interrogation, provided he cooperates with the agency. However, he is considered a significant flight risk due to his past history of absconding, and his movement remains restricted under an active Look Out Circular (LOC). While he is not behind bars, the fresh evidence seized during the April 21 raids, including documents linked to dummy directors and financial instruments, is expected to be used by the ED to petition the court for his custodial remand to further probe the Rs 1,400 crore money trail.

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