India’s corporate sector was jolted after market regulator SEBI accused Rajesh Exports of allegedly overstating revenues on a staggering scale. The regulator claimed that the revenues disclosed at the group level were significantly higher than what could actually be independently verified through audited subsidiary records. The allegations, covering five financial years from FY21 to FY25, have now evolved into one of the most serious suspected accounting irregularities in Indian corporate history.
A Fraud Case of Unprecedented Scale
SEBI’s interim order dated June 3, 2026 alleged that Rajesh Exports and promoter Rajesh Mehta misrepresented nearly ₹15.15 lakh crore in revenues. According to the regulator, nearly 97–99 percent of the company’s consolidated turnover originated from overseas subsidiaries, especially Switzerland-based Valcambi SA.
The central issue emerged from a major mismatch identified during a forensic review conducted by BDO. SEBI noted that while Valcambi’s audited standalone revenue for calendar year 2023 stood at only ₹542.68 crore, Rajesh Exports reported consolidated revenue of approximately ₹2.93 lakh crore attributed to the same subsidiary. The regulator argued that such figures raised serious concerns over the authenticity and recognition of revenues.
Rise of a Gold Refining Giant
Rajesh Exports had long been regarded as one of India’s most prominent gold and jewellery companies. The Bengaluru-headquartered firm built its reputation through global gold refining, bullion trading and jewellery exports. Its acquisition of Valcambi years ago positioned the company as a major player in the international precious metals market.
For years, the company reported exceptionally high turnover figures, frequently placing it among India’s top revenue-generating firms. However, analysts often questioned the unusually thin profit margins despite enormous revenues, a concern that gained significance after SEBI initiated scrutiny following shareholder complaints regarding unpaid receivables and inconsistencies in disclosures.
SEBI’s Major Allegations
SEBI’s interim findings outlined five broad categories of alleged violations. The regulator accused the company of inflating revenues by recording gross gold transaction values instead of recognising only refining income. It also alleged non-disclosure of subsidiary details and incomplete financial reporting.
Additionally, the regulator claimed that certain funds may have been diverted through accounts linked to the promoter. Another point of concern involved an alleged unverified ₹1,035 crore investment in an Africa-based gold mine. SEBI further stated that investigators faced repeated difficulties due to incomplete submissions and lack of full cooperation during the probe.
Company’s Response and Latest Developments
Rajesh Exports has firmly denied all allegations. In an exchange filing, the company maintained that its reported revenues were accurate and not overstated. Rajesh Mehta also stressed that the SEBI order remains interim in nature and does not amount to a final conclusion of wrongdoing. He stated that the company had already submitted nearly 350–400 GB of data to support its position.
Meanwhile, SEBI has barred Rajesh Mehta from participating in the securities market until further directions. The regulator has also ordered a fresh forensic audit and referred the matter to the National Financial Reporting Authority for examination of the auditors’ conduct. Following the order, the company’s stock hit the 5 percent lower circuit, sharply eroding investor confidence.
Corporate Governance Under the Spotlight
The Rajesh Exports case has emerged as a defining test for India’s regulatory and corporate governance framework. If SEBI’s allegations are ultimately proven, the matter could rank among the largest instances of alleged revenue misrepresentation ever seen in the country. At the same time, the company’s denial and the interim nature of the proceedings mean the final legal and financial outcome remains uncertain. Regardless of the verdict, the episode has already intensified scrutiny of consolidated accounting practices, overseas subsidiaries and audit transparency in India’s corporate ecosystem.
(With agency inputs)
