India’s securities regulator, the Securities and Exchange Board of India (SEBI), has issued a bombshell interim order against Rajesh Exports Ltd (REXP.NS), a prominent gold jewellery exporter and Fortune Global 500 company, accusing it of misrepresenting revenues to the tune of approximately ₹15.15 lakh crore ($158–159 billion) over five financial years from FY21 to FY25. This figure reportedly accounts for nearly 99.8% of the company’s consolidated revenues during the period.
The allegations, if proven, could rank among the largest cases of financial misrepresentation in Indian corporate history, raising serious questions about oversight of overseas subsidiaries, auditor diligence, and institutional investor due diligence.
At the heart of the case is Rajesh Exports’ ownership of Valcambi SA, a well-known Swiss gold refiner acquired in 2015. According to SEBI, the Indian parent company and its overseas entities, particularly Global Gold Refineries AG (GGR), booked the full value of refined gold as revenue. In reality, the company primarily acted as a toll refiner, processing gold on behalf of customers without taking ownership, meaning it should have recognized only refining fees or value-addition income.
SEBI’s analysis revealed stark discrepancies:
Rajesh Exports and its subsidiaries reported consolidated revenues of around ₹15.45 trillion over the five years, with ~₹15.18 trillion attributed to overseas subsidiaries and step-down entities.
Valcambi SA’s own audited standalone financials showed revenues of just a few hundred crore rupees annually (e.g., around ₹543 crore in one recent year), a tiny fraction of the group figures.
The regulator noted that 97–99% of the group’s reported revenue stemmed from these overseas operations, yet the company repeatedly failed to provide complete subsidiary financial records despite multiple requests. Rajesh Exports cited Swiss privacy laws as a barrier, but SEBI countered that it is legally authorized to obtain such information under the same frameworks.
SEBI also flagged suspicious dealings with Affluence Shares and Stocks Pvt Ltd. Rajesh Exports recorded massive sales (₹11,487 crore) and purchases (₹11,488 crore) with the broker. However, Affluence explicitly told SEBI that Rajesh Exports was never a client, no agreements existed, and no such trades were executed.
The regulator alleges these entries were fabricated to align with gold derivative trades executed by promoter-chairman Rajesh Mehta in his personal capacity, using funds allegedly diverted from the company (around ₹339 crore routed to his personal accounts) without proper board approval.
Additional concerns include unverified claims of investments in African gold mines and other related-party issues.
In its interim order dated June 3, 2026, SEBI has Barred Rajesh Exports, its promoter Rajesh Mehta, and certain entities from the securities markets until further orders.
Directed a forensic audit. Called for “true and fair” disclosures in financial statements.
Shares of Rajesh Exports plunged nearly 5% on June 4, hitting lower circuit limits. Life Insurance Corporation of India (LIC), holding about 10.8% of the company, saw its stake value impacted, with broader concerns for over 194,000 shareholders.
Rajesh Exports has strongly denied the allegations, describing them as arising from a “confusion and communication gap” regarding revenue recognition, particularly around Valcambi’s operations. Chairman Rajesh Mehta stated that the company’s financial disclosures were correct and that it has submitted substantial data (reportedly 400 GB) to SEBI. The company plans to contest the order and provide clarifications.
It maintains that Valcambi’s standalone figures reflect only processing charges, while group-level reporting captures gross transaction values appropriately under applicable standards.
This case highlights longstanding challenges in regulating complex multinational structures involving commodity trading and refining. It has sparked debate about the role of auditors, the effectiveness of consolidated financial reporting, and potential systemic risks in India’s gold export sector.
SEBI’s investigation, triggered partly by shareholder complaints and old receivables issues, is ongoing. A final determination could have significant repercussions for the company, its leadership, investors, and potentially the broader credibility of Indian corporate governance.
As the forensic audit proceeds and the company prepares its defense, markets and regulators will be watching closely. For now, this remains an interim order based on prima facie findings, and Rajesh Exports is entitled to due process.
