The Securities and Exchange Board of India (Sebi) has confirmed interim restrictions on Rajesh Exports and promoter Rajesh Mehta, citing unresolved concerns over financial disclosures, alleged revenue misrepresentation and fund transactions. Under the confirmatory order dated October 14, Mehta will continue to be restrained from buying, selling or otherwise dealing in the company's securities, directly or indirectly, until further orders. The regulator confirmed that the company failed to adequately rebut Sebi's preliminary findings despite being given opportunities to respond, with the order noting that the company and Mehta had failed to adequately rebut its preliminary findings relating to financial misrepresentation, incomplete disclosures, non-cooperation with the investigation and routing of company funds through personal accounts. Speaking to NDTV Profit, Mehta said he had not yet fully reviewed the order, maintaining that no penalty had been imposed and SEBI had not arrived at any findings yet. He continued to cooperate with the regulator and expressed optimism about the eventual outcome of the investigation.
In the latest confirmatory order, Sebi has directed Rajesh Exports to cooperate fully with an ongoing investigation into the company's financial disclosures and transactions. The regulator has demanded that the company and Mehta provide all documents, information and explanations sought by the investigating authority within prescribed timelines. Sebi has directed a newly appointed forensic auditor to complete its work expeditiously and asked the investigating authority to conclude its probe without delay. The order also requires Rajesh Exports to ensure truthful, accurate and complete disclosures in its financial statements, related-party transactions and other material information under applicable securities regulations. SEBI had appointed BDO India Services Pvt Ltd as forensic auditor on December 3, 2024, but noted that incomplete information and lack of cooperation had delayed the forensic audit and investigation.
The regulator noted that the company had failed to furnish the financial statements of its subsidiaries and step-down subsidiaries, despite statutory requirements. It also did not provide the requisite party-wise details of sales, purchases, debtors, creditors and inventory, citing confidentiality agreements and restrictions under Swiss law. SEBI further observed that Rajesh Exports had reported substantially higher consolidated revenues by including revenues attributable to its overseas subsidiaries and step-down subsidiaries, while inconsistencies were found in the consolidation of accounts. The company's examination covered April 2020 to March 2024, following a complaint alleging that substantial trade receivables had remained outstanding for more than two years.
The order follows an interim order dated June 3, 2026, which raised concerns over the company's financial reporting, disclosures and cooperation with the investigation. Sebi's prima facie findings indicate that Rajesh Exports overstated and misrepresented the group's operational scale and financial performance between FY21 and FY25. The regulator questioned the company's consolidated revenue of ₹15.4 lakh crore for FY21-25, which was significantly higher than the ₹3,027.3 crore in standalone revenue reported by its Swiss subsidiary Valcambi SA over the same five-year period. The difference represents about 99% of the consolidated revenue, with SEBI whole-time member Kamlesh Chandra Varshney noting that the company had not demonstrated how differences in reporting periods accounted for the magnitude of the disparity, stating that the explanation was not tenable and continued to raise concerns about verifiability and reliability of consolidated revenue disclosures.
Sebi rejected the company's explanations for not providing complete information, stating that private confidentiality arrangements cannot be used to bypass regulatory obligations. The regulator noted that the material available did not show that the company had taken all legally permissible steps to provide information sought by the regulator. Rajesh Exports had cited confidentiality, data-protection requirements and Swiss law restrictions for not furnishing certain information, but Sebi rejected these explanations at this stage. The company had not furnished information in a complete and usable form to enable independent verification of financial data, including consolidated operations, underlying accounting records and details relating to foreign subsidiaries. The regulator also flagged the alleged classification of ₹867 crore in foreign exchange gains as revenue and ₹204 crore in mutual fund and deposit interest as revenue, while company funds were routed through the personal bank accounts of Rajesh Mehta and Siddharth Mehta without adequate related-party disclosures and board approvals. SEBI observed that the company and other noticees had submitted incomplete information despite being given sufficient time and had failed to cooperate with the forensic auditor, hampering the completion of the forensic audit report and the investigation.
Despite the confirmed restrictions, Rajesh Exports Chairman Rajesh Mehta expressed confidence of being cleared, telling NDTV Profit that he was '100%' sure of it. Mehta maintained that no penalty had been imposed and SEBI had not arrived at any findings yet, adding that no further action had been suggested. He continued to cooperate with the regulator and expressed optimism about the eventual outcome of the investigation. The chairman's statements come as Sebi retains its interim restrictions on his trading activities while the investigation continues. SEBI noted that several preliminary allegations recorded in its interim order remained unrebutted by the company and Mehta, including the alleged misrepresentation of ₹15.15 lakh crore in consolidated revenue. The company's examination covered April 1, 2020 to March 31, 2024, following a complaint that substantial trade receivables had remained outstanding for more than two years. Rajesh Exports is listed on the BSE and the National Stock Exchange, selling gold products in domestic and overseas markets and operating retail showrooms under the Shubh Jewellers brand.
