Rajesh Exports Pays ₹510 Crore to Canara Bank After DRT Order
· Business · Economic Times
Canara Bank has recovered its full ₹510 crore dues from Bengaluru-based gold and jewellery exporter Rajesh Exports following a Debt Recovery Tribunal (DRT) order directing the company to deposit the money to prevent its properties from being sold. The account had turned non-performing in 2020 and was admitted to the DRT in 2021, after which the bank also filed an insolvency case in the NCLT and initiated SARFAESI action. The company had obtained a stay on all recovery efforts from the Karnataka High Court, except the DRT case, which was decided in the bank's favour after nearly six years. Canara Bank was the largest creditor to Rajesh Exports, which is also under scrutiny from SEBI over alleged large-scale financial misrepresentation, non-cooperation with investigators, and possible inflation of reported revenues.
Why it matters
Rajesh Exports was one of India's largest gold and jewellery exporters, and this six-year recovery battle exposes the long, parallel-track fight banks must wage to recover dues from defaulting corporates. The SEBI allegations of financial misrepresentation and opaque transactions raise fresh questions about governance at the company, with potential fallout for lenders, investors, and regulators.
Read the original report — Economic Times
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