Here is a detailed breakdown of the SEBI investigation into Rajesh Exports Limited (REL), the allegations surrounding the ₹15.15 lakh crore revenue discrepancy, the restrictions placed on its leadership, and how the company has responded to the crisis
The Alleged ₹15.15 Lakh Crore Scam
The core of the Securities and Exchange Board of India (SEBI) investigation revolves around a massive alleged misrepresentation of revenue by Rajesh Exports, a major multinational gold retailer and refiner headquartered in Bengaluru. In a 109-page interim ex-parte order issued on June 3, 2026, the market regulator outlined several severe corporate governance and financial lapses:
- Massive Revenue Inflation: SEBI alleged that REL misrepresented its consolidated revenues by a staggering ₹15.15 lakh crore between the financial years 2020-21 and 2024-25.
- Opaque Overseas Operations: According to the regulator, 97% to 99% of REL’s consolidated revenue (representing about 99.8% of total reported revenue during this period) originated from its overseas subsidiaries, primarily the Switzerland-based refinery Valcambi SA. The financials of these offshore subsidiaries were reportedly kept opaque and not publicly disclosed
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- Questionable Transactions: The regulator flagged a multi-year pattern of “non-genuine” transactions. For example, SEBI noted that Rajesh Exports recorded ₹11,487 crore in sales and ₹11,488 crore in purchases with a single entity, Affluence Shares and Stocks Pvt. Ltd., indicating inadequate disclosures and highly questionable accounting practices.
- Fund Diversion: The probe uncovered instances of routing and layering funds through personal accounts and related entities. SEBI alleged that company funds worth ₹339 crore were routed directly to the promoter’s personal accounts to be used for derivative trades, entirely without the approval of the board or the audit committee.
- Shareholder Impact: SEBI estimates that these alleged financial irregularities led to an erosion of shareholder wealth amounting to ₹12,726 crore, impacting both small shareholders and large institutional investors like LIC and Canara Bank.
Restrictions on Promoters
Due to the severity of the findings and what the regulator described as a “sustained non-cooperation” designed to suppress material information, SEBI took immediate and strict action against the company’s leadership
- Market Ban: SEBI barred REL’s Promoter, Chairman, and CEO, Rajesh Mehta, from buying, selling, or dealing in the company’s securities, either directly or indirectly, until further orders are issued.
- New Forensic Audit: The regulator ordered the appointment of a new, independent forensic auditor to complete a thorough investigation of the company’s books. This was triggered after SEBI noted that both REL and its previous statutory auditors failed to cooperate or provide working papers during earlier forensic exercises.
- Mandatory Cooperation: SEBI directed REL and Rajesh Mehta to fully cooperate with the investigating authority. They have been given 30 days to furnish all sought documents, explanations regarding the end-use of funds, and true and fair financial statements under standard listing regulations.
Company Response
Following the release of the interim order—which triggered a sharp market sell-off, locking REL shares in the 5% lower circuit for multiple days—Rajesh Exports issued a public clarification outlining its defense:
- No Final Conclusion: The company heavily emphasized that the SEBI order is purely an “interim” measure and that no adverse conclusions have been definitively proven or established.
- Denial of Inflation: REL categorically denied the core allegation, stating that the revenues declared by the company over the years are completely accurate and that there has been no overstatement of earnings.
- “Communication Gap”: The company attributed the regulatory action to a “communication gap and confusion” between themselves and the market regulator, rather than intentional fraud.
- Ongoing Cooperation: REL assured shareholders that it is in the process of resolving all misunderstandings. The company stated it is actively submitting all required and authenticated documents to SEBI, expressing confidence that the regulator will ultimately arrive at the correct conclusion once the paperwork is fully reviewed.
₹15 Lakh Crore Scam? SEBI Flags Alleged Revenue Scam at Rajesh Exports | Did LIC Miss Red Flags?
This video provides a detailed breakdown of the SEBI allegations regarding the revenue scam at Rajesh Exports and discusses the implications for major investors like LIC.
The Alleged ₹15.15 Lakh Crore Scam
The core of the Securities and Exchange Board of India (SEBI) investigation revolves around a massive alleged misrepresentation of revenue by Rajesh Exports, a major multinational gold retailer and refiner headquartered in Bengaluru. In a 109-page interim ex-parte order issued on June 3, 2026, the market regulator outlined several severe corporate governance and financial lapses:
- Massive Revenue Inflation: SEBI alleged that REL misrepresented its consolidated revenues by a staggering ₹15.15 lakh crore between the financial years 2020-21 and 2024-25.
- Opaque Overseas Operations: According to the regulator, 97% to 99% of REL’s consolidated revenue (representing about 99.8% of total reported revenue during this period) originated from its overseas subsidiaries, primarily the Switzerland-based refinery Valcambi SA. The financials of these offshore subsidiaries were reportedly kept opaque and not publicly disclosed.
- Questionable Transactions: The regulator flagged a multi-year pattern of “non-genuine” transactions. For example, SEBI noted that Rajesh Exports recorded ₹11,487 crore in sales and ₹11,488 crore in purchases with a single entity, Affluence Shares and Stocks Pvt. Ltd., indicating inadequate disclosures and highly questionable accounting practices.
- Fund Diversion: The probe uncovered instances of routing and layering funds through personal accounts and related entities. SEBI alleged that company funds worth ₹339 crore were routed directly to the promoter’s personal accounts to be used for derivative trades, entirely without the approval of the board or the audit committee.
- Shareholder Impact: SEBI estimates that these alleged financial irregularities led to an erosion of shareholder wealth amounting to ₹12,726 crore, impacting both small shareholders and large institutional investors like LIC and Canara Bank.
Restrictions on Promoters
Due to the severity of the findings and what the regulator described as a “sustained non-cooperation” designed to suppress material information, SEBI took immediate and strict action against the company’s leadership:
- Market Ban: SEBI barred REL’s Promoter, Chairman, and CEO, Rajesh Mehta, from buying, selling, or dealing in the company’s securities, either directly or indirectly, until further orders are issued.
- New Forensic Audit: The regulator ordered the appointment of a new, independent forensic auditor to complete a thorough investigation of the company’s books. This was triggered after SEBI noted that both REL and its previous statutory auditors failed to cooperate or provide working papers during earlier forensic exercises.
- Mandatory Cooperation: SEBI directed REL and Rajesh Mehta to fully cooperate with the investigating authority. They have been given 30 days to furnish all sought documents, explanations regarding the end-use of funds, and true and fair financial statements under standard listing regulations.
Company Response
Following the release of the interim order—which triggered a sharp market sell-off, locking REL shares in the 5% lower circuit for multiple days—Rajesh Exports issued a public clarification outlining its defense:
- No Final Conclusion: The company heavily emphasized that the SEBI order is purely an “interim” measure and that no adverse conclusions have been definitively proven or established.
- Denial of Inflation: REL categorically denied the core allegation, stating that the revenues declared by the company over the years are completely accurate and that there has been no overstatement of earnings.
- “Communication Gap”: The company attributed the regulatory action to a “communication gap and confusion” between themselves and the market regulator, rather than intentional fraud.
- Ongoing Cooperation: REL assured shareholders that it is in the process of resolving all misunderstandings. The company stated it is actively submitting all required and authenticated documents to SEBI, expressing confidence that the regulator will ultimately arrive at the correct conclusion once the paperwork is fully reviewed.
₹15 Lakh Crore Scam? SEBI Flags Alleged Revenue Scam at Rajesh Exports | Did LIC Miss Red Flags?
This video provides a detailed breakdown of the SEBI allegations regarding the revenue scam at Rajesh Exports and discusses the implications for major investors like LIC.
