Rajesh Exports SEBI Case: Know Who Is Rajesh Mehta as Regulator Flags 97% Revenue Inflation Allegations

Rajesh Exports has come under intense regulatory scrutiny after the Securities and Exchange Board of India (SEBI) flagged alleged financial irregularities in the company's reported revenue figures. The development has placed its promoter and chairman, Rajesh J Mehta, at the centre of a major corporate governance debate in the Indian markets.

According to SEBI's interim findings, the regulator has raised concerns over possible misrepresentation of revenue linked to overseas subsidiaries between FY21 and FY25. The matter has triggered sharp reactions from investors and led to regulatory action against key individuals associated with the company.

SEBI Flags Alleged Revenue Inflation in Rajesh Exports Case

In a detailed 109-page interim order, SEBI stated that its preliminary investigation indicated that a significant portion of Rajesh Exports' reported revenue may have been overstated. The regulator observed that nearly 97% to 99% of the company's revenue could potentially be inflated, describing the findings as "egregious and unheard of" in its order.

Following these observations, SEBI has restrained Rajesh Mehta from dealing in the shares of Rajesh Exports while the investigation continues. The regulator's action marks a significant development in one of the most closely watched corporate cases in the gold export sector.

Reacting to the SEBI action, Rajesh Mehta, Chairman of Rajesh Exports, has strongly defended the company's position. As per NDTV Profit, he suggested that the regulator may not have fully reviewed the documentation submitted by the company due to the large volume of records involved.

Mehta maintained that the company has followed all required disclosures and regulatory processes, although SEBI's findings have raised serious questions that remain under investigation.

Who Is Rajesh Mehta? Meet Man Behind Rajesh Exports

Rajesh J Mehta, aged 60, is the founder and chairman of Rajesh Exports, based in Bengaluru. He established the company in 1989 and gradually built it into one of the world's largest gold refining and export businesses.

Beginning his career in the precious metals trade at a young age after leaving college, Mehta initially worked in silver trading before expanding into jewellery manufacturing and exports. Over the decades, he played a key role in scaling the company's global footprint.

Growth of Rajesh Exports and Key Milestones

Rajesh Exports operates across the entire gold value chain, including procurement of raw gold, refining, jewellery manufacturing, and global distribution. A major turning point came in 2015 when the company acquired Valcambi, a Switzerland-based refinery considered one of the largest gold refining facilities in the world.

Financially, the company reports annual revenue of approximately $39.2 billion (around Rs 3.75 lakh crore) and a net income of about $153.2 million (nearly Rs 1,465 crore). On the stock market, Rajesh Exports is valued at roughly Rs 9,829 crore.

Following SEBI's interim order, market sentiment around the stock turned cautious. Reports suggest that LIC, which holds a 10.8% stake in the company, also saw marginal pressure on its valuation exposure as the stock slipped.

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