Rajesh Exports Rejects Revenue Inflation Allegations, Denies Rs 15 Lakh Crore Scam Claim

Rajesh Exports has strongly rejected allegations by the Securities and Exchange Board of India (SEBI) that it inflated revenues by approximately Rs 15.15 lakh crore, describing the regulator's findings as preliminary and asserting that its reported revenues are accurate. The company's response came a day after SEBI issued an interim order alleging major discrepancies in the gold refiner and jewellery manufacturer's financial reporting between FY21 and FY25.

In a filing to stock exchanges, the Bengaluru-based company said there had been no overstatement of revenue and that it was in the process of submitting additional documents to address the regulator's concerns. Rajesh Exports maintained that the figures disclosed in its financial statements were correct and expressed confidence that the matter would be resolved once all relevant records were reviewed. The company also suggested that the issue may have arisen due to a communication gap or misunderstanding during the investigation process.

SEBI's 109-page interim order alleged that a substantial portion of the company's reported consolidated revenues could not be independently verified during the course of its investigation. According to the regulator, the mismatch amounted to around Rs 15.15 lakh crore, making it one of the largest alleged cases of revenue misrepresentation examined by the market regulator. SEBI also barred promoter-chairman Rajesh Mehta from dealing in the company's securities until further directions are issued.

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The investigation was initiated following a shareholder complaint filed in March 2024, which raised concerns about certain financial disclosures, including long-pending trade receivables. As part of the probe, SEBI appointed an investigating authority and engaged forensic auditor BDO to examine the company's records. The scrutiny focused particularly on revenues reported by overseas subsidiaries, including Switzerland-based Valcambi SA, a key component of Rajesh Exports' global refining operations.

SEBI alleged that between 97 per cent and 99 per cent of the company's consolidated revenues originated from overseas subsidiaries, but the amounts independently verified were significantly lower than the figures reported at the group level. The regulator also raised questions regarding certain transactions, related-party dealings and investments linked to African gold mining assets. Rajesh Exports, however, emphasised that the order is interim in nature and does not constitute a final finding. The company and its chairman will have the opportunity to submit evidence and respond to the allegations before SEBI reaches a final conclusion, with the outcome likely to have significant implications for both the company and investors.

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