More Stories

Informist, Wednesday, Jun. 3, 2026

MUMBAI – The Securities and Exchange Board of India has issued an interim order against Rajesh Exports Ltd. and its promoter after finding that almost all of the company's revenues between 2020-21 (Apr-Mar) and 2025-26 were "misrepresented". SEBI also barred the company's promoter and Executive Chairman Rajesh Mehta from dealing in securities of Rajesh Exports over his involvement in presenting inflated figures of the company's financials, according to an interim order by the regulator on Wednesday.

The company claimed most of its revenue came from its step-down subsidiary Valcambi SA, which is registered in Switzerland. However, SEBI said there were inconsistencies in the claims based on information available in the public domain and limited information provided by the company. SEBI found Valcambi's revenues were miniscule in comparision to Rajesh Exports' consolidated revenue, which was inconsistent with the company's claims of Valcambi SA being the "principal operating entity".

SEBI said Rajesh Exports could not explain these inconsistencies, which suggested the financials were inflated, according to the order. "...the issue is not merely that certain information remains unavailable, but that the revenues disclosed by REL at the consolidated level appear incapable of independent verification despite repeated regulatory requisitions...," SEBI said.

"This prima facie raises doubt on the genuineness of the disclosures in the financial statements. Viewed cumulatively, the material available on record indicates that the consolidated financial statements of REL appear to have materially overstated and misrepresented the operational scale and financial performance of the group during FY 2020-21 to FY 2024-25," it said.

Apart from this, SEBI also found that the company falsely recorded exchange fluctuation of INR 8.67 billion as revenue from operations. It also incorrectly accounted interest of INR 2.04 billion from investments in mutual funds and fixed deposits as revenue from operations. 

SEBI also said the company incorrectly reported intra-group investments and trade payables, and routed the company's funds through the personal bank account of Rajesh Mehta. "(Rajesh Exports) Falsely recorded derivative transactions executed by Mr. Rajesh Mehta in his personal capacity as its own sales (INR 11,487 crore) and purchases (INR 11,488 crore) with Affluence," the order said.

"In the instant matter, investigation has revealed misrepresentation in financial statements as well as instances of routing and layering of funds through personal accounts and related entities without adequate disclosures or supporting documentation," SEBI said, while explaining the need for an interim order. "...there exists a credible apprehension that advance notice of proposed regulatory action may enable diversion, dissipation or restructuring of assets, destruction or alteration of records, or further obstruction of the investigative process, thereby frustrating effective regulatory enforcement.

For the March quarter, Rajesh Exports had reported a consolidated net loss of INR 534.97 million on revenue of INR 2.37 trillion. On Wednesday, its shares closed at INR 109.38 on the National Stock Exchange, up 2.4% from Tuesday.  End

Reported by Anshul Choudhary

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.