New Delhi: Rajesh Exports is a leading global gold firm with its headquarters situated in Bengaluru. The company deals with refined metals and the export of jewelry, and it has maintained one of the most profitable books, listing among the top companies. However, this reputation could soon turn into a major felony, submerging the company’s trust among customers and stockholders.
In a recent order, SEBI (Securities and Exchange Board of India) revoked the rights of the company and its named partner-owner, Rajesh Mehta, accessing the securities market. Alleged financial misrepresentations over the last five years involving 15.15 lakh crores led to this ban and extremely focused scrutiny. The investigations are underway, and the revelations are not yet final. Suspicion first arose when a shareholder complained to SEBI in 2024 about a two-year hold on his assets in the company; while it is considered that such giants are not usually associated with this kind of delay, this spark followed an alleged fraud trail. SEBI reacted to the complaint with an investigation and found major discrepancies in the company’s documents.
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Between FY21 and FY25, heavy revenue was earned from overseas markets, contributing around 98% of total sales. A case of revenue inflation was spotted when auditors examined the documents; they found that the numbers reported by the regulator Valcambi SA, a Switzerland-based gold refinery which was acquired by Rajesh Exports earlier, indicated a major difference in funds on paper. This furthered the findings, and investigators alleged that they were kept away from crucial documents requested from Rajesh Exports, which added another layer of suspicion. After painstakingly extracting the required papers, the auditors found a whopping 15.15 lakh crore rupee discrepancy. Sending signals of dismay to investors, this revelation has been the talk of the industry. The apex authority also questioned an investment worth 1,035 crore rupees in gold from an Africa-based asset.
Rajesh Exports reportedly goofed up in transactions mediated through Affluence Shares and Stocks Pvt. Ltd., leading to another exposure of the firm’s misdeeds. Most of the money transferred from the regulator based in Switzerland allegedly went into the owner’s personal accounts. Responding to the allegations, Rajesh Exports rejected all claims, saying that the order is temporary and staying by the company’s quoted revenue numbers.
This is affecting not only the stocks but also household levels. LIC (Life Insurance Corporation), being one of the investors holding more than a 10 percent share of Rajesh Exports’ ownership, may burn the income of its customers; paid for insurance, to cover the depleting stock failures. It is hoped that the matter resolves quickly, following action by SEBI to act if the scam is legally proven.
