Published Jun 06, 2026 | 2:02 PM ⚊ Updated Jun 06, 2026 | 2:02 PM
SEBI
Synopsis: According to SEBI, Rajesh Exports reported sales of ₹114.87 billion and purchases of ₹114.88 billion with Affluence Shares and Stocks Private Limited. However, Affluence said that no such transactions ever took place. SEBI alleges that these were fake accounting entries linked to promoter Rajesh Mehta’s personal derivatives trading. The purpose, according to the regulator, was to artificially increase the company’s reported turnover without any real business activity.
On Wednesday, 3 June, through an interim order, the Securities and Exchange Board of India (SEBI) barred Rajesh Exports, a listed gold refiner and holding entity, and its promoter-chairman Rajesh Mehta from securities markets, alleging that the company had misrepresented its revenue totalling ₹15.15 trillion, over the past five years, largely via unverified overseas entities.
According to a Reuters report, the regulator said 97 percent–99 percent of Rajesh Exports’ consolidated revenue came from overseas subsidiaries, particularly Switzerland-based Valcambi SA.
But the company systematically did not disclose its subsidiaries’ financials in the public domain. Valcambi SA was projected as the principal operating entity, but disclosed negligible standalone revenues in its audited financial statements.
By doing so, Rajesh Exports misrepresented approximately ₹15.15 trillion, which represented 99.80 percent of its revenues from subsidiaries between fiscal 2020-21 and 2024-25.
It is also to be noted that, the Life Insurance Corporation (LIC) has 10.8 percent stake in the company, raising serious concerns.
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According to SEBI, Rajesh Exports reported sales of ₹114.87 billion and purchases of ₹114.88 billion with Affluence Shares and Stocks Private Limited. However, Affluence said that no such transactions ever took place.
SEBI alleges that these were fake accounting entries linked to promoter Rajesh Mehta’s personal derivatives trading. The purpose, according to the regulator, was to artificially increase the company’s reported turnover without any real business activity.
The regulator also claims that Rajesh Exports transferred ₹3.39 billion of company funds to Rajesh Mehta’s personal accounts, including money used for derivatives trading, without approval from the board or audit committee and without proper disclosure to investors.
In total, SEBI says ₹9.26 billion was moved through related transactions without the required approvals or disclosures.
SEBI estimates that these alleged misrepresentations and fund diversions caused shareholder wealth to decline by about ₹127.26 billion, affecting both large and small investors.
A major part of SEBI’s order dealt with the company’s overseas subsidiaries and step-down subsidiaries, particularly Switzerland-based Valcambi SA and Global Gold Refineries AG (GGR).
“It is observed that the standalone revenues of Valcambi SA constituted less than 0.50% of the consolidated revenues reported by GGR and REL, which appears fundamentally inconsistent with REL’s repeated assertion that Valcambi SA was the principal operating entity driving the group’s revenues and the fact that GGR is holding company and is not having any day to day operations,” the SEBI order said according to a Bar and Bench report.
The order also recorded allegations of non-cooperation by Rajesh Exports and Mehta. SEBI said that the company failed to give the forensic auditor access to its ERP systems, books of accounts and journal dump. The forensic auditor could verify only 35.07 percent of sales samples worth ₹12,217.15 crore with complete documentation.
SEBI noted that Mehta was actively involved in the affairs and financial operations of Rajesh Exports and its subsidiaries. The order recorded that Managing Director Suresh Gowda had told SEBI that overseas subsidiaries and step-down subsidiaries were exclusively handled by Mehta.
In light of the above, SEBI proceeded to direct Rajesh Exports and Mehta to cooperate with its investigation in the matter and furnish documents within 30 days.
On 4 June, Rajesh Exports said in a BSE filing stated, “The revenues declared by the company are correct, and there is no over-stating of revenues. There seems to be some type of communication gap and confusion between SEBI and the company.”
The Congress, on Thursday, 4 June, sought answers on whether LIC’s investment in the firm was influenced by the “ruling ecosystem”, citing the insurer’s significant exposure to a company now under regulatory scrutiny.
Congress leader Jairam Ramesh, took to X, and questioned, “What is particularly disturbing is that LIC owns around 10.8% of Rajesh Exports. Banks too have considerable exposure to this clearly politically influential company.”
“How could LIC have missed such a huge fraud taking place in a company in which it has a substantial stake? This raises the question of whether LIC’s acquisition of such a substantial stake was driven by instructions from the ruling ecosystem.”
SEBI has, in an interim report dated June 3 2026, alleged a gigantic scam involving a high-flying company called Rajesh Exports which is in the gold refining and jewellery business. SEBI says that there has been a massive misrepresentation of revenues spanning a five year period…
— Jairam Ramesh (@Jairam_Ramesh) June 4, 2026
According to an NDTV report, the issue came to light after SEBI received a shareholder complaint on 11 March 2024.
The complaint raised concerns about the company’s unusually large trade receivables—money owed to the company by customers—that had remained unpaid for more than two years. Such long-pending dues can be a warning sign of problems in recovering payments or possible issues in the company’s financial reporting.
In response, SEBI launched a detailed investigation. In October 2024, it appointed an investigating authority and later engaged forensic audit firm BDO to review the company’s accounts and verify its financial disclosures.
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