SEBI probe alleges ₹15.15 lakh crore revenue inflation at Rajesh Exports

The Securities and Exchange Board of India (SEBI) has issued an interim order barring Rajesh Exports and its promoter-chairman Rajesh Mehta from accessing the securities market. The drastic action follows allegations of serious financial misrepresentation and governance failures, with SEBI claiming that Rajesh Exports inflated its consolidated revenues by approximately ₹15.15 lakh crore between FY21 and FY25. This alleged inflation accounts for nearly 99.8% of the revenue attributed to the company's overseas subsidiaries. [2, 3, 7, 8, 13, 16, 17, 20, 22, 29, 33] The investigation was triggered by a shareholder complaint in March 2024 concerning trade receivables that had remained outstanding for over two years. SEBI's subsequent forensic audit raised significant concerns regarding the veracity of Rajesh Exports' reported revenues, particularly those generated by its overseas subsidiaries, most notably Switzerland-based Valcambi SA. SEBI found that Valcambi SA's audited standalone financial statements showed revenues that were a fraction of the consolidated revenues reported by Rajesh Exports and its group entities. [2, 3, 7, 13, 16, 17, 19, 22] Further allegations include fund diversion, with SEBI claiming that ₹339 crore was transferred from Rajesh Exports to accounts linked to Rajesh Mehta, of which ₹232 crore was returned. In total, ₹926 crore was allegedly routed through transactions linked to Mehta without proper board or audit committee approval and without required related-party disclosures. Additionally, SEBI flagged a claimed investment of ₹1,035 crore in African gold mining assets, which the company could not substantiate with adequate documentation. Transactions with an entity named 'Affluence Shares and Stocks' also came under scrutiny, as Affluence denied any business relationship with Rajesh Exports, stating that its dealings were only with Mehta in his personal capacity. [2, 3, 11, 19] Rajesh Exports has vehemently denied the allegations, attributing the discrepancies to a "communication gap" and confusion between the company and SEBI, particularly regarding the accounting of EBITDA versus revenue for its Swiss subsidiary, Valcambi SA. The company maintains that its reported revenues are accurate and genuine. [5, 10, 19, 21, 25, 29, 33] The market has reacted sharply to the SEBI order, with Rajesh Exports' shares hitting the lower circuit for three consecutive sessions. The stock has experienced a significant decline, reflecting investor concerns about corporate governance, transparency, and the company's financial health. The Life Insurance Corporation of India (LIC), a major institutional investor, holds approximately 10.8% of Rajesh Exports, and SEBI estimates that shareholder wealth erosion could amount to nearly ₹12,726 crore. [3, 10, 16, 18, 22] SEBI's interim order also highlighted issues with the cooperation of Rajesh Exports' statutory auditors, who reportedly failed to submit requested audit working papers. The regulator suggested this non-cooperation indicated a deliberate attempt to withhold material information. The matter has been referred to the National Financial Reporting Authority (NFRA) for examining the company's statutory auditors. [8, 9, 11] While SEBI's order is interim and not a final determination of guilt, the scale of the allegations has sent shockwaves through India's corporate and investment community. The case is being compared to the Satyam scam, with the alleged revenue misrepresentation dwarfing the scale of that earlier fraud. The implications extend to investors, financial institutions, and the broader regulatory framework governing Indian corporations. [14, 16] Rajesh Exports has stated that it is in the process of submitting all necessary documents and explanations to SEBI to address the concerns raised in the interim order, expressing confidence in resolving the matter. [26] News Category: Business/Finance, India News Specificity: India Credibility Score: 7/10 (Moneycontrol.com is generally a reliable source for financial news in India, though it has been rated as 'Mixed' for factual reporting by Media Bias/Fact Check. The other cited sources like ETLegalWorld.com, Daily Pioneer, and Telegraph India are also credible but with varying bias ratings. The information presented in the article is consistent across multiple reputable news outlets.) Importance Score: 8/10 (This is a significant development in the Indian stock market with implications for a major listed company, its investors, and regulatory oversight.) ContentType: News/Investigation Urgency: High Published Date: 2026-06-03T00:00:00Z (This is the date of the SEBI order which triggered the news events. Reporting dates vary but this is the foundational date for the action.) Is Trending: True FAQs: 1. What are the main allegations against Rajesh Exports by SEBI? SEBI alleges that Rajesh Exports misrepresented its consolidated revenues by approximately ₹15.15 lakh crore between FY21 and FY25, and also engaged in fund diversion and failed to provide adequate disclosures. SEBI has barred the company and its promoter from the securities market pending further investigation. 2. How has Rajesh Exports responded to SEBI's allegations? Rajesh Exports has denied the allegations, stating that its reported revenues are accurate and genuine. The company attributes the discrepancies to a "communication gap" and confusion with SEBI, particularly regarding the accounting of EBITDA versus revenue for its Swiss subsidiary, Valcambi SA. They are providing documentation to SEBI to clarify the matter. 3. What is the impact of SEBI's order on Rajesh Exports' stock price and investors? The SEBI order has caused Rajesh Exports' stock to hit the lower circuit for multiple consecutive sessions, leading to a significant decline in its share price. The potential wealth erosion for investors is estimated to be around ₹12,726 crore, with LIC being a major shareholder. 4. What are the next steps in the SEBI investigation into Rajesh Exports? SEBI has ordered a fresh forensic audit and has restrained Rajesh Mehta from dealing in REL shares. The company has been directed to submit all requested documents within a specified timeframe. The matter has also been referred to the National Financial Reporting Authority (NFRA) for examination of the company's statutory auditors. The adjudication process will continue, and Rajesh Exports and Rajesh Mehta retain the right to present their defense.

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