The Securities and Trade Board of India (SEBI) has restrained Rajesh Mehta, promoter and Govt Chairman of Rajesh Exports Ltd, from shopping for, promoting or dealing within the firm’s securities after a probe discovered prima facie proof of large-scale monetary misrepresentation, disclosure failures and diversion of firm funds.
The regulator estimated that Rajesh Exports had “prima facie misrepresented roughly INR 15,15,385 crore” of income attributable to subsidiaries between FY21 and FY25, representing almost 99.8 per cent of such revenues attributed to abroad subsidiaries and step-down subsidiaries. “The aforesaid conduct seems to have prima facie enabled REL to painting an inflated and deceptive image of its operational scale, consolidated monetary place and monetary well being earlier than buyers and the securities market”, the 109-page order stated.
The regulator additionally discovered vital inconsistencies between the revenues reported on the consolidated stage and the audited monetary statements of key working subsidiary Valcambi SA. They discovered misrepresentation of standalone revenues amounting to ₹12,557 crore throughout FY21-FY24.
SEBI has additional alleged that REL falsely recorded spinoff transactions executed by Rajesh Mehta in his private capability as firm gross sales of ₹11,487 crore and purchases of ₹11,488 crore, labeled change fluctuations of ₹867 crore and ₹716 crore as income and purchases respectively, and booked ₹204 crore of curiosity earnings from mutual funds and glued deposits as income from operations.
The regulator has directed Rajesh Exports and Mehta to cooperate with the continued investigation and has ordered the appointment of a contemporary forensic auditor to look at the corporate’s books. The regulator has additionally directed the corporate to make true and truthful disclosures to buyers and forwarded a duplicate of the order to the Nationwide Monetary Reporting Authority for applicable motion.
The motion stems from an investigation launched after a shareholder criticism in March 2024 alleging potential monetary misrepresentation regarding long-outstanding commerce receivables. SEBI’s probe coated the interval between April 2020 and March 2024.
The regulator alleged that Rajesh Exports failed to offer crucial data to investigators and forensic auditors, together with entry to its ERP system, books of accounts and transaction-level information. The corporate additionally didn’t furnish monetary statements of key abroad subsidiaries and step-down subsidiaries that account for the majority of its consolidated enterprise, it stated.
SEBI additionally flagged non-cooperation with the investigation, discrepancies in gross sales information submitted by the corporate, questionable transactions with sure counter-parties, and routing of firm funds via Rajesh Mehta’s private financial institution accounts.
The regulator noticed that buyers could have been offered with an inflated image of the group’s operational scale and monetary place. The interim order will stay in drive pending additional investigation and proceedings.
Revealed on June 3, 2026
