Mehta Challenges Sebi’s Decision Regarding Inflated Revenue of Rs 15L Cr
BENGALURU/MUMBAI: Rajesh Mehta, the head of Rajesh Exports, has been banned by the Securities and Exchange Board of India (Sebi) for allegedly inflating the company’s revenues over several years. The regulator’s decision follows a complaint from a shareholder regarding potential financial misrepresentation. In response, Mehta claimed there was a communication gap with Sebi and defended the company’s revenue figures for fiscal years 2025 and 2026.
The investigation by Sebi was prompted by allegations that Rajesh Exports manipulated its revenues between FY21 and FY25, inflating the consolidated revenue to Rs 15.2 lakh crore. According to Sebi’s interim order, 99.8% of the total consolidated revenue during this period was misrepresented. A significant portion of these revenues was attributed to Valcambi SA, the company’s wholly-owned subsidiary in Switzerland, which is the world’s largest refiner of precious metals.
On Thursday, Rajesh Exports’ stock fell to the lower circuit limit on both the BSE and NSE, closing at Rs 104.6 and Rs 103.9, respectively. Sebi’s investigation revealed major discrepancies in the company’s financial records, including unverified claims about acquiring gold mines in Africa. The order also noted that Mehta had engaged in gold derivatives trading on the MCX through his personal account, with those revenues inaccurately reported as company income.
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