SEBI Bars Rajesh Exports, Owner Over $158 Billion Revenue Misrepresentation
Updated
Updated · Reuters · Jun 3
SEBI Bars Rajesh Exports, Owner Over $158 Billion Revenue Misrepresentation
3 articles · Updated · Reuters · Jun 3
Summary
15.15 trillion rupees ($158.3 billion) of Rajesh Exports' revenue was allegedly misrepresented, prompting SEBI to bar the company and owner Rajesh Mehta from securities markets pending its investigation.
97%-99% of consolidated revenue from fiscal 2020-21 to 2024-25 was said to come from overseas subsidiaries, especially Valcambi SA, whose standalone audited accounts showed negligible revenue while subsidiary financials were not publicly disclosed.
114.87 billion rupees in reported sales and 114.88 billion rupees in purchases with Affluence Shares and Stocks were flagged as non-genuine after the counterparty denied the transactions, with SEBI linking them to Mehta's personal derivative trades.
9.26 billion rupees was routed without approvals or disclosures, including 3.39 billion rupees sent to Mehta's personal accounts, and SEBI estimated shareholder wealth erosion at 127.26 billion rupees.
With its founder barred and accounts frozen, can India's largest jewellery exporter survive this scandal?
How did a $158 billion revenue fraud escape auditors and regulators for five years?
Rajesh Exports’ $158 Billion Accounting Scandal: SEBI Action, Governance Lapses, and Investor Fallout
Overview
In June 2026, SEBI issued an interim order against Rajesh Exports Ltd (REL) and its chairman, Rajesh Mehta, following a shareholder complaint about large outstanding trade receivables. Investigations revealed alleged large-scale financial misrepresentation and fund diversion, with Mehta identified as the central decision-maker. REL routed 9.26 billion rupees without proper approvals and systematically failed to disclose financial information about key overseas subsidiaries, especially Valcambi SA, which accounted for nearly all of REL’s revenue. These actions exposed serious governance failures and regulatory blind spots, shaking investor confidence and prompting calls for stronger oversight.