New Delhi, Jun 23 (PTI) The Enforcement Directorate on Tuesday conducted searches against Rajesh Exports which is facing scrutiny from market regulator Sebi over alleged financial irregularities, official sources said.

The action is understood to have been taken under the Foreign Exchange Management Act (FEMA) at the Bengaluru-headquartered company.

Premises in Bengaluru and Mumbai linked to the company are being covered, they said.

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 those amounts, according to an interim order by Sebi.

The regulator has restrained the company's Chairman and Managing Director, Rajesh Mehta, from buying, selling or dealing in securities of Rajesh Exports, either directly or indirectly, until further orders.

Rajesh Exports has denied any financial irregularities, saying its reported revenues were correct and that there seemed to be a communication gap between the markets regulator and the firm. PTI NES RT RT RT

Foreign exchange and securities scrutiny deepens as searches target Rajesh Exports over alleged financial irregularities. Enforcement action under the Foreign Exchange Management Act was reported against Rajesh Exports after market regulator scrutiny over alleged financial irregularities. Searches were conducted at premises linked to the company in Bengaluru and Mumbai. The scrutiny concerns an interim regulatory order alleging inflated consolidated revenues through overseas subsidiaries, particularly Valcambi SA in Switzerland. The regulator also restrained the company's Chairman and Managing Director from dealing in the company's securities until further orders.