Rajesh Exports Repays ₹510 Crore Dues to Canara Bank After DRT Order
Rajesh Exports has repaid approximately ₹510 crore in outstanding dues to Canara Bank, following an order of the Debt Recovery Tribunal (DRT). The recovery brings the bank’s outstanding dues from the Bengaluru-based gold and jewellery exporter to an end.
The loan account had turned non-performing in 2020, after which Canara Bank initiated recovery proceedings before the DRT in 2021. The lender had also pursued parallel remedies under the insolvency framework and the SARFAESI Act.
The DRT ultimately ruled in Canara Bank’s favour and directed Rajesh Exports to deposit the money to prevent the company’s properties from being sold. The recovery proceedings had remained pending for several years.
Canara Bank was the largest creditor of Rajesh Exports. The bank had pursued multiple recovery routes after earlier attempts to recover the dues through insolvency proceedings were blocked.
Following the DRT order, Canara Bank approached the Karnataka High Court for implementation of the tribunal’s directions. The High Court permitted implementation and dismissed petitions filed by the company challenging the recovery action, after which the ₹510 crore was transferred to the bank’s account.
Canara Bank’s own 2026 stressed-loan sale documents had disclosed ₹509.37 crore as the total dues against Rajesh Exports, broadly corresponding to the ₹510-crore recovery now reported. The bank had contemplated transferring the stressed exposure through an auction process.
The recovery comes at a particularly significant time for Rajesh Exports. In June 2026, SEBI alleged large-scale financial misrepresentation by the company after its investigation and forensic review. According to SEBI’s interim findings, there was prima facie evidence suggesting that around 97–99% of reported revenue may have been inflated.
SEBI has also restrained Rajesh Mehta, associated with the company, from buying, selling or dealing in securities of Rajesh Exports until further orders. The company’s financial and regulatory affairs therefore remain under scrutiny even as the Canara Bank recovery has now been completed.
The ₹510-crore recovery highlights the importance of DRT proceedings as a debt-recovery mechanism for banks, particularly where other recovery avenues under the Insolvency and Bankruptcy Code and SARFAESI Act face litigation or delay. In this case, the DRT proceedings ultimately enabled Canara Bank to secure recovery of its entire outstanding amount.
