Rajesh Exports to Resubmit 400GB Docs to SEBI Amid Alleged ₹15 Lakh Cr Fraud

Gold refiner and jewellery exporter Rajesh Exports is at the center of a major corporate governance controversy in India, following an interim order by the Securities and Exchange Board of India (SEBI). The company announced on Sunday, June 7, 2026, that it had already submitted 300-400 gigabytes of documents to the market regulator but believed SEBI had been unable to locate the correct files. Consequently, Rajesh Exports committed to resubmit all requested documents within 15 days to resolve the matter. The development comes after SEBI issued a comprehensive 109-page ex parte interim order on June 3, 2026, alleging massive financial irregularities by the Bengaluru-based firm. The regulator primarily accused Rajesh Exports of inflating its revenues by a staggering ₹15.15 lakh crore (approximately $159 billion) between fiscal years 2021 and 2025. This amount allegedly represents a significant portion, nearly 99.8 percent, of the revenues attributed to its subsidiaries, which SEBI claims were materially misrepresented. Rajesh Mehta, the founder and chairman of Rajesh Exports, vehemently denied SEBI's allegations in an interview with PTI, stating that the interim order was rooted in a fundamental accounting error. Mehta explained that SEBI had allegedly mistaken the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which he equates to gross profit, for actual revenue. He illustrated this with a jewellery shop analogy: if a customer buys gold for ₹30,000 (revenue), the gross profit might be ₹1,000. Mehta alleged that SEBI recorded this ₹1,000 gross profit as revenue instead of the full ₹30,000 sale value, leading to the massive discrepancy. Beyond revenue inflation, SEBI's interim order also raised serious concerns about alleged fund diversion, opaque related-party transactions, and significant disclosure failures. The regulator claimed that company funds were routed through personal accounts and promoter-linked entities without adequate board approval or disclosure. Furthermore, SEBI's investigation, which commenced in March 2024 following a shareholder complaint regarding unusually large and long-outstanding trade receivables, found issues with alleged investments in gold mines in Africa, for which supporting documentation was reportedly missing or unverifiable. As part of its interim measures, SEBI has barred Rajesh Mehta from buying, selling, or dealing in Rajesh Exports' securities until further proceedings are concluded. The regulator has also mandated a fresh forensic audit of the company's books to delve deeper into the alleged financial misrepresentations and governance lapses. The interim nature of the order means these are prima facie findings, and the investigation is ongoing. The repercussions of SEBI's order extend beyond the financial markets. The Ministry of Heavy Industries (MHI) is actively reviewing Rajesh Exports' inclusion in the production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage. Sources within the ministry indicate a "strong view" to remove the company from the scheme, a decision expected to be finalized shortly after being presented to the Union Minister for Heavy Industries. Rajesh Exports' pivot into lithium-ion battery storage was seen as a strategic diversification, and its potential removal from the PLI scheme could significantly impact its future plans in this sector. The case has drawn significant attention due to the magnitude of the alleged fraud, which some reports describe as one of the largest accounting irregularities in Indian corporate history. It also raises critical questions about corporate governance standards, auditor oversight, and the protection of minority shareholders in India. While Rajesh Exports maintains that its financial disclosures are accurate and compliant with regulatory norms, the ongoing investigation and the interim restrictions highlight the increased scrutiny by Indian regulators on transparency and accountability in financial reporting.

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