Rajesh Exports hits 52-week low for illegal routing of gold

The company has come under the scanner of the DRI for allegedly routing gold meant for exports into the Indian retail market.

Rajesh Exports is trading lower by 2% at Rs 120, in otherwise firm market, on reports that the company has come under the scanner of the Directorate of Revenue Intelligence (DRI) for allegedly routing gold meant for exports into the Indian retail market.

The stock tanked 11% to Rs 109, also its lowest level since August 2011, in early morning deals on NSE. A combined around 400,972 shares changed hands on the counter till 1252 hours against an average around 100,000 shares that were traded daily in past two weeks on NSE and BSE.

DRI has contended that a sizeable chunk of gold imported by the Rajesh Exports to its facility in the Cochin Special Economic Zone (CSEZ) has been illegally diverted into the domestic gold market.

“DRI’s Cochin office is framing charges against the company, under Section 135 of the Customs Act. If proven guilty, the company would have to cough up double the tax evaded and the prime accused would be sentenced to three years in prison,” the Business Standard report suggests.