Rajesh Exports Scandal: SEBI Flags ₹15 Lakh Crore Revenue Discrepancy Allegations

One of India’s most closely watched corporate fraud cases broke wide open on June 4, 2026. SEBI passed an interim order against Rajesh Exports Limited (NSE: RAJESHEXPO), the world’s largest gold processor, alleging it misrepresented consolidated revenues worth ₹15.15 lakh crore between FY21 and FY25. 

The alleged misrepresentation accounts for 99.80% of all revenues generated by its overseas subsidiaries during that period. Shares locked immediately in a 5% lower circuit at ₹103 on the NSE. The stock has plunged 54% from its 52-week high of ₹239 hit on December 22, 2025, and is down 34% in 2026 alone. For context, Rajesh Exports once traded at ₹1,029; the stock has now fallen over 98% from that record high. 

What SEBI’s Interim Order Actually Alleges

The SEBI order is not a routine compliance notice. It is a detailed fraud allegation with three distinct layers.

• Layer 1: Unverifiable overseas revenue: SEBI alleged that most of the ₹15.15 lakh crore in misrepresented revenues came from overseas subsidiaries whose figures could not be independently verified by the regulator. The scale is staggering; ₹15.15 lakh crore represents nearly the entire consolidated revenue of Rajesh Exports across five financial years.
• Layer 2: Non-genuine accounting entries: SEBI flagged transactions involving Affluence Shares and Stocks Pvt Ltd, Rajesh Exports reported sales of ₹11,487 crore and purchases of ₹11,488 crore with Affluence. However, Affluence reportedly denied carrying out any such transactions. SEBI alleged these were non-genuine accounting entries linked to Rajesh Mehta’s personal derivatives trading and were used to inflate turnover without any underlying economic substance.
• Layer 3: Fund diversion through personal accounts: SEBI alleged that Rajesh Exports routed ₹339 crore of company funds to accounts linked to promoter Rajesh Mehta, including for his personal derivative trades, without board or audit committee approvals and without making proper related-party disclosures.
• The order directly quoted Rajesh Exports’ own March 17, 2026, admission via email: funds were routed through Rajesh Mehta’s bank account “without revealing the bank account from which the funds had come.” SEBI’s order states, “The said explanation itself indicates intentional obfuscation of fund trails and layering of transactions through the promoter’s personal bank account.”

SEBI’s Actions and Timelines

SEBI did not stop at allegations. The interim order came with immediate and binding restrictions.

• Promoter barred: Rajesh Mehta has been barred from dealing in securities of the company, either directly or indirectly
• Company barred: Rajesh Exports itself is restricted from accessing the securities market until the investigation concludes
• 30-day deadline: The company must provide all information related to the investigation to SEBI authorities within 30 days of the order
• Shareholding context: As of March 31, 2026, promoters hold 54.5%, FIIs hold 14.2%, DIIs hold 10.8%, and retail public holds 20.3% 
• The promoter’s 54.5% stake being frozen in place creates a direct liquidity concern for the remaining 45.5% of freely traded shares, a factor that amplifies the lower circuit pressure on retail and institutional holders simultaneously.

The Stock’s Destruction in Numbers

• NSE price (June 4): ₹103, locked in 5% lower circuit; BSE at ₹104.65
• 52-week high: ₹239 on December 22, 2025; stock is now down 54% from that level
• 2026 YTD decline: -34% | 3-year decline: -81%
• All-time high: ₹1,029; the stock has collapsed by over 98% from its peak
• Q4 FY26 net loss: ₹53.46 crore vs a profit of ₹1.96 crore in Q4 FY25

For the quarter ended March 2026, Rajesh Exports reported consolidated revenue of ₹2,36,864.21 crore, higher than ₹1,09,189.67 crore in Q4 FY25. However, the net loss widened to ₹53.46 crore in Q4 FY26 versus a profit of ₹1.96 crore year-on-year. Revenue surging while profits collapse into losses is precisely the pattern SEBI’s investigation targets: revenues that have no economic substance underneath them.

How This Compares to India’s Biggest Corporate Frauds

Rajesh Exports’ ₹15.15 lakh crore revenue misrepresentation allegation is structurally different from India’s prior high-profile cases. The Satyam Computer fraud in 2009 involved ₹7,136 crore in falsified cash balances. The IL&FS crisis in 2018 involved ₹91,000 crore in debt misrepresentation. Neither approached the scale of revenue inflation alleged here.

The key distinction is the mechanism: SEBI alleged the misrepresentation was concentrated in overseas subsidiaries whose figures could not be verified, a structural opacity that allowed inflated numbers to pass through audits across five consecutive financial years. 

Disclaimer

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