SEBI Bars Rajesh Exports and Its Chairman Over Alleged ₹15.15 Lakh Crore Revenue Fraud

Mumbai | 5 June 2026 

SEBI’s 109-page interim ex-parte order, issued on June 3 by Whole Time Member Kamlesh Chandra Varshney, alleges that Rajesh Exports misrepresented consolidated revenues of approximately ₹15.15 lakh crore between FY21 and FY25. According to the regulator, this figure represented 99.8% of the company’s total reported consolidated revenue during the period.

What Did SEBI Find?

SEBI alleged that 97 to 99% of Rajesh Exports’ consolidated revenue originated from overseas subsidiaries, chiefly Switzerland-based Valcambi SA. The company did not publicly disclose those subsidiaries’ financials, according to the order.

The regulator also flagged that Rajesh Exports recorded ₹11,487 crore in sales and ₹11,488 crore in purchases with an entity called Affluence Shares and Stocks Pvt. Ltd. SEBI described these as non-genuine transactions and flagged a multi-year pattern of questionable accounting practices and inadequate disclosures.

Fund Diversion and Shareholder Wealth Erosion

SEBI alleged that company funds worth ₹339 crore were routed to Mehta’s personal accounts, including for derivative trades, without board or audit committee approval. The regulator estimated shareholder wealth erosion at ₹12,726 crore, affecting small shareholders alongside institutional investors.

Canara Bank and LIC Exposure

Rajesh Exports defaulted on repayment obligations to Canara Bank, prompting the state-run lender to classify its exposure as stressed. Canara Bank’s total dues from the company stood at ₹509 crore. The bank has decided to sell the stressed exposure through an open auction.

Life Insurance Corporation of India holds a 10.8% stake in Rajesh Exports, making it one of the largest institutional investors in the company.

How Has the Stock Reacted?

Shares of Rajesh Exports on the NSE fell 4.99%, or ₹5.19, to ₹98.73 on June 5, with the open, high, and low all at the same level, indicating no buying interest at the current price. Over the past five days, the stock has declined 12.18%, shedding ₹13.69, and is down 17.15% over the past month, losing ₹20.44. The 52-week high stands at ₹237.88, against a current price of ₹98.73. The stock is now down nearly 50% over the past year.

Who Is Rajesh Mehta?

Rajesh Mehta was born on June 20, 1964, in Bengaluru. He built Rajesh Exports from a silver jewellery business started in the early 1980s alongside his brother Prashant, funded initially by a ₹1,200 loan from their eldest brother. The company entered the capital markets in 1995 with an IPO raising ₹10 crore and subsequently expanded across the gold value chain, from refining and manufacturing to retailing.

SEBI’s interim order restrains both Rajesh Exports and Mehta from the securities markets until the investigation concludes.

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The matter referred to is based on SEBI’s interim order and the allegations therein remain to be conclusively established.

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