India, June 24 -- Weeks after the SEBI findings of an inflated invoice of more than Rs 15 lakh crore, the Enforcement Directorate (ED) on Tuesday conducted searches against Rajesh Exports. The case is registered under FEMA (Foreign Exchange Management Act) after finding a huge foreign fund inflow and outflow to Rajesh Exports' linked firms operating in foreign countries.

The ED raids are happening at Bengaluru and Mumbai, said officials. Rajesh Exports Ltd allegedly inflated its consolidated revenues by more than Rs 15 lakh crore over five years by attributing massive revenues to overseas subsidiaries, particularly Switzerland-based Valcambi SA, despite the subsidiary's audited standalone financial statements showing only a fraction of t...