Rajesh Exports one of the leading precious metal and Jewelry exporter was placed amongst India’s largest listed firms. The Bengaluru headquarter company remains under the scanner as market watchdog, SEBIs interim order raised serious questions over the authenticity of the company’s financial statements. It barred promoter- chairman Rajesh Mehta from accessing the securities market resulting a massive crash in its value. It has also directed the company to provide all pending information sought by investigators within 30 days.
According to the regulator, the team uncovered prima facie evidence that substantiate alleged large-scale financial irregularities, possible revenue inflation and non-cooperation during an ongoing investigation. It added that approximately 97% to 99% of the company’s revenue appeared to be inflated based on the findings available so far.
Currently, a fresh forensic auditor to conduct a more detailed review of the company’s books and transactions has been appointed.
What actually happened?
Rajesh Exports first came under scrutiny following a complaint questioning unusually large scale receivables that had reportedly remained outstanding for more than 2 years. Prompting the market regulator to launch a probe, in October 2024, an investigating authority along with a forensic auditor BDO were appointed to examine the company’s books and verfiy the financial disclosures made by the group.
What follows were startling allegations.
According to SEBI, betwen FY21 and FY25, nearly all exports of the companys’ consolidated revenues came from overseas subsidaries. Concerns were raised about transactions involving overseas subsidiaries and step-down subsidiaries, including entities in Singapore and Switzerland. These included REL Singapore, Global Gold Refineries AG and Swiss precious metals refiner Valcambi.
The result was a cumulative discrepancy of Rs 15.15 lakh crores across five years.
Shares of Rajesh Export dropped by 5 percent on Thursday in response to the SEBI allegations. The stock is down 42% so far this year. For five years now, Rajesh Exports shares have delivered negative returns in a row. The stock declined 0.8% in 2022, followed by a 50% fall in 2023, 37% fall in 2024, 20% drop in 2025 and all time low in 2026 as of today.