SEBI flags Rs 15.15 lakh crore revenue misstatement in 5 Years, Interim order against Rajesh Exports - Moneycontrol.com

Published 3 June 2026 · finance

SEBI has ordered the appointment of a fresh forensic auditor to examine the company's books and records, observing that an earlier forensic audit was completed

SEBI has ordered the appointment of a fresh forensic auditor to examine the company's books and records, observing that an earlier forensic audit was completed without full cooperation from the noticees. The Swiss Vault: SEBI's theory of how a Rs 15-Lakh-Crore revenue puzzle was built at Rajesh Exports SEBI issues interim order against Rajesh Exports and Rajesh Mehta Company accused of misrepresenting 99.8% of consolidated revenues Rajesh Mehta barred from trading Rajesh Exports securities Did our AI summary help? Market regulator Securities and Exchange Board of India (SEBI) has passed an interim e parte order against Rajesh Exports Ltd. (REL) and its Chairman and Managing Director, Rajesh Mehta, citing prima facie findings of financial misrepresentation, fund-routing irregularities and non-cooperation during an ongoing investigation. SEBI alleged that in the interim order, REL misrepresented consolidated revenues aggregating to approximately Rs 15.15 lakh crore, representing 99.80 percent of the total consolidated revenue for the period FY 2020-21 to FY 2024-25. In a 109-page order on Wednesday, Whole Time Member Kamlesh Chandra Varshney noted that REL engaged in a multi-year pattern of recording non-genuine transactions, adopting improper accounting treatments, routing corporate funds through personal accounts and promoter-linked entities, and failing to make adequate disclosures to investors. "It is an interim order and nothing in it is true," Rajesh Mehta, chairman and managing director at Rajesh Exports, told Moneycontrol on June 4 morning. "We are in the process of studying it and will prepare a response," he added. How does SEBI allege misrepresentation? SEBI’s interim order alleges that Rajesh Exports materially misrepresented its consolidated financial statements by reporting extremely large revenues from overseas subsidiaries that could not be independently verified.

According to SEBI, nearly 97–99 percent of the company’s consolidated revenue originated from foreign subsidiaries, particularly Valcambi SA. However, Valcambi’s audited standalone financial statements showed only a small fraction of the revenues reported at the group level. SEBI contends that the company recognized gross gold transaction values rather than only refining or processing income, without providing adequate supporting records, customer details, invoices, or accounting justification, thereby potentially inflating revenues and misleading investors. "I prima facie find that the pattern of routing substantial sums through the personal bank accounts of Mr. Rajesh Mehta and Siddharth Mehta, coupled with absence of approvals, non-disclosure and inconsistent explanations, demonstrates systemic failure of corporate governance, concealment of material information and deliberate circumvention of regulatory requirements," Varshney said in the order. According to SEBI, the company's books and financial statements for FY21-FY25 were prima facie manipulated through non-genuine and unverifiable transactions, incorrect consolidation of accounts, unexplained investments, non-disclosure of related-party transactions, and diversion of funds through promoter-linked entities. Also read: IndusInd Bank insider trading probe: SEBI conducts Kolkata searches; e official under scanner The regulator alleged that these actions resulted in misleading financial statements that portrayed an inflated picture of the company's operational scale, balance sheet strength, and financial health. Among its findings, SEBI alleged that REL misrepresented consolidated revenues aggregating approximately Rs 15.15 lakh crore, representing about 99.8 percent of total consolidated revenue reported during FY21-FY25. Order stated, “REL has prima facie misrepresented approximately Rs 15,15,385 crore i.e. representing 99.80% of its revenues which are attributed to subsidiaries during the period FY 2020-21 to FY 2024-25.