SEBI Alleges Rs 15.15 Trillion Revenue Inflation at Rajesh Exports

SEBI has barred Rajesh Exports Chairman Rajesh Mehta and the company from the securities market while it continues its investigation into alleged financial irregularities.

The probe began after SEBI received a shareholder complaint on March 11, 2024, raising concerns about possible financial misrepresentation in the company’s books.

According to SEBI, Rajesh Exports misrepresented nearly Rs 15.15 trillion of revenue between FY21 and FY25, representing about 99.8% of revenue generated through its subsidiaries and step down subsidiaries.

The regulator said 97% to 99% of the group’s consolidated revenue was reported from overseas subsidiaries, mainly Switzerland based Valcambi SA, which was presented as the company’s principal operating entity.

However, SEBI found that Valcambi SA’s standalone audited financial statements showed revenue equal to less than 0.5% of the consolidated revenue reported by Rajesh Exports and its holding company, Global Gold Refineries AG (GGR).

SEBI alleged that Rajesh Exports did not publicly disclose detailed financial information of its overseas subsidiaries despite those entities accounting for almost the entire group revenue.

The order also highlighted transactions worth Rs 114.87 billion in sales and Rs 114.88 billion in purchases recorded with Affluence Shares and Stocks Pvt Ltd. Affluence reportedly denied carrying out any such transactions.

According to SEBI, these transactions were non genuine entries linked to Rajesh Mehta’s personal derivative trades and were allegedly used to inflate the company’s turnover without real economic activity.

The regulator further alleged that Rajesh Exports routed Rs 3.39 billion of company funds to Mehta’s personal accounts, including for derivative trading activities, without board or audit committee approval.

SEBI said a total of Rs 9.26 billion was routed without required approvals or related party disclosures, raising concerns over corporate governance practices.

Pending completion of the investigation, SEBI has directed the company to fully cooperate with investigators, ordered a fresh forensic audit, and referred the conduct of the company’s auditors for the relevant years to NFRA for further examination.

The regulator estimated that alleged revenue misrepresentation and fund diversion caused shareholder wealth erosion of about Rs 127.26 billion, impacting both institutional and retail investors.

As of March 2026, FIIs hold 14.26% in Rajesh Exports, led by Bridge India Fund with an 8.46% stake and Schwab Fundamental Emerging Markets Equity ETF with 2.70%. DIIs hold 10.80%, largely driven by LIC, which owns 10.80% of the company. Promoters continue to hold 54.55%, while public shareholders own 20.39%.