SEBI orders probe into Rajesh Exports over financial misrepresentation

Who it concerns: Rajesh Exports Limited (REL), Rajesh Mehta

What SEBI found or ordered

• SEBI found prima facie evidence of non-cooperation by the Noticees, including withholding ERP access and journal dumps.
• SEBI noted that REL failed to upload financial statements of its subsidiaries and step-down subsidiaries on its website as required by law.
• SEBI observed that REL provided complete documentation for only 2.03% of a sampled INR 7,021.36 crores in transaction testing.
• SEBI identified misrepresentation of financial statements on both consolidated and standalone bases.
• SEBI noted discrepancies regarding claims of investment in gold mines in Africa and incorrect adjustment of trade receivables against payables.
• SEBI found prima facie evidence of misutilization of funds by REL.
• The order is interim, issued under Sections 11(1), 11(4), and 11B of the SEBI Act, 1992.

Also in the document

• The investigation period covers April 01, 2020, to March 31, 2024.
• REL is a mid-cap company with a market capitalization of INR 3,210 crore as of June 03, 2026.
• The corporate structure includes overseas subsidiaries in Singapore, Switzerland, UAE, and the USA (dissolved).
• A forensic audit was conducted by BDO India Services Pvt Ltd, which reported significant limitations due to lack of access to primary records.
• The order cites the Swiss Federal Act on Data Protection as a reason REL refused to share data for foreign subsidiaries.