Sebi Probe Revives Long-Standing Questions Over Rajesh Exports

Rajesh Exports has come under intense scrutiny after market regulator Sebi alleged possible inflation of revenues worth ₹15.15 lakh crore across its subsidiaries and ordered a fresh forensic audit.

The interim order triggered a sharp sell-off in the stock, with shares hitting the lower circuit for two consecutive sessions. Sebi has also barred promoter-chairman Rajesh Mehta from accessing the securities market pending further investigation.

While the latest action has brought Rajesh Exports into the spotlight, concerns about the company’s financial reporting are not new. For more than a decade, analysts and investor-rights advocates questioned how the Bengaluru-based gold giant consistently reported massive revenues while generating relatively thin profits.

One of the earliest public examinations came in 2014, when financial publication Moneylife highlighted apparent mismatches between the company’s reported turnover and its employee costs, administrative expenses, assets, and borrowings. Similar concerns resurfaced over the years, particularly regarding the gap between Rajesh Exports’ enormous sales figures and modest earnings.

According to Sebi, nearly 97-99% of the company’s consolidated income during FY21-FY25 came from subsidiaries and branches. The regulator has raised concerns over subsidiary disclosures, related-party transactions, and access to overseas financial records.

Rajesh Exports has denied any wrongdoing, stating that its revenues are accurately reported and attributing the issue to a communication gap with the regulator. The company said it is cooperating with Sebi and submitting the required documents.

As Sebi’s investigation continues, the regulator’s findings have reignited long-standing questions surrounding one of India’s highest-revenue listed companies.

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