SEBI has alleged that Bengaluru-based Rajesh Exports inflated revenues through questionable transactions involving overseas subsidiaries, with irregularities amounting to nearly ₹15.15 lakh crore. The market regulator has barred Managing Director Rajesh Mehta pending further proceedings.
Mumbai : A major corporate controversy has erupted after the Securities and Exchange Board of India (SEBI) uncovered what is being described as one of the largest alleged accounting irregularities in recent years. The findings have drawn comparisons with some of India's most infamous financial scandals, with the market regulator alleging that Bengaluru-based Rajesh Exports significantly overstated its revenues over a five-year period.
Rajesh Exports, a listed company known globally for manufacturing and exporting gold jewellery and precious metal products, is accused of presenting distorted financial statements between 2021 and 2025. According to a detailed SEBI report released on June 3, the company allegedly inflated its revenues through transactions involving overseas subsidiaries and associated entities. The regulator claims that these arrangements enabled the company to project substantially higher earnings than it actually generated and subsequently raise funds from the domestic market on the basis of those reported figures.
The company’s financial statements for the five-year period reportedly showed cumulative revenues exceeding ₹15.34 lakh crore. However, SEBI has alleged that between 97 and 99 per cent of these reported revenues lacked genuine economic substance, raising questions over transactions worth nearly ₹15.15 lakh crore. The scale of the alleged irregularities is so large that it exceeds the annual gross domestic product of several countries.
In a significant regulatory action, SEBI has barred Rajesh Exports Managing Director Rajesh Mehta from participating in the securities market pending further proceedings. The development immediately rattled investors, with the company’s shares falling by around 5 per cent in Thursday morning trading.
The controversy has also acquired a political dimension. State-owned insurance giant Life Insurance Corporation of India (LIC) holds approximately 10.8 per cent of Rajesh Exports, making it one of the company’s major shareholders. Opposition party Congress has questioned how such large-scale alleged irregularities could continue for years without attracting scrutiny from regulators and government agencies. Congress leader Jairam Ramesh alleged that public-sector investments helped the company expand despite concerns over the credibility of its reported business activity.
SEBI has clarified that its findings are part of an ongoing process and that the matter is yet to reach a final conclusion. Nevertheless, the regulator’s observations have triggered intense debate in financial and political circles, with investors closely watching the next phase of the investigation.
Rajesh Exports, a listed company known globally for manufacturing and exporting gold jewellery and precious metal products, is accused of presenting distorted financial statements between 2021 and 2025. According to a detailed SEBI report released on June 3, the company allegedly inflated its revenues through transactions involving overseas subsidiaries and associated entities. The regulator claims that these arrangements enabled the company to project substantially higher earnings than it actually generated and subsequently raise funds from the domestic market on the basis of those reported figures.
The company’s financial statements for the five-year period reportedly showed cumulative revenues exceeding ₹15.34 lakh crore. However, SEBI has alleged that between 97 and 99 per cent of these reported revenues lacked genuine economic substance, raising questions over transactions worth nearly ₹15.15 lakh crore. The scale of the alleged irregularities is so large that it exceeds the annual gross domestic product of several countries.
In a significant regulatory action, SEBI has barred Rajesh Exports Managing Director Rajesh Mehta from participating in the securities market pending further proceedings. The development immediately rattled investors, with the company’s shares falling by around 5 per cent in Thursday morning trading.
The controversy has also acquired a political dimension. State-owned insurance giant Life Insurance Corporation of India (LIC) holds approximately 10.8 per cent of Rajesh Exports, making it one of the company’s major shareholders. Opposition party Congress has questioned how such large-scale alleged irregularities could continue for years without attracting scrutiny from regulators and government agencies. Congress leader Jairam Ramesh alleged that public-sector investments helped the company expand despite concerns over the credibility of its reported business activity.
SEBI has clarified that its findings are part of an ongoing process and that the matter is yet to reach a final conclusion. Nevertheless, the regulator’s observations have triggered intense debate in financial and political circles, with investors closely watching the next phase of the investigation.
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