Markets regulator SEBI has confirmed its interim directions against Rajesh Exports and Chairman Rajesh Mehta over alleged financial misrepresentation and suspected misuse of company funds, retaining restrictions on Mehta's dealings in the company's shares.
The Securities and Exchange Board of India directed Rajesh Exports to ensure true, fair, accurate and complete disclosures of its financial statements, related-party transactions and other material information. The regulator also asked the investigating authority to expedite the probe and directed the newly appointed forensic auditor to complete its work at the earliest.
Speaking to NDTV Profit, Mehta said he had not yet fully reviewed the order. He maintained that no penalty had been imposed and SEBI had not arrived at any findings yet. Mehta added that no further action had been suggested and said he was continuing to cooperate with the regulator. He expressed confidence that he would be cleared, saying he was "100%" sure of it.
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The confirmatory order follows SEBI's interim directions issued on June 3, 2026, after concerns emerged over the company's financial disclosures, consolidation of accounts and failure to provide complete information sought by the regulator and its forensic auditor.
SEBI's examination covered April 2020 to March 2024, following a complaint that substantial trade receivables had remained outstanding for more than two years.
The regulator said several preliminary allegations recorded in its interim order remained unrebutted by the company and Mehta. These include the alleged misrepresentation of Rs. 15.15 lakh crore in consolidated revenue, which SEBI said accounted for 99.8% of consolidated revenue over five years.
SEBI also flagged derivative transactions worth Rs. 11,487 crore recorded as company sales and Rs. 11,488 crore recorded as purchases. Other concerns included the alleged classification of Rs. 867 crore in foreign exchange gains as revenue and Rs. 204 crore in mutual fund and deposit interest as revenue.
The regulator raised questions over standalone revenue, intra-group investments and payables, and the adjustment of receivables through what it described as opaque netting. It also alleged that company funds were routed through the personal bank accounts of Rajesh Mehta and Siddharth Mehta without adequate related-party disclosures and board approvals.
SEBI said the company had not furnished the financial statements of its subsidiaries and step-down subsidiaries, while inconsistent submissions had hampered its investigation. The company had cited confidentiality agreements and restrictions under Swiss law for withholding certain information.
SEBI directed that Mehta remain restrained from buying, selling or otherwise dealing, directly or indirectly, in Rajesh Exports securities until further orders.
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The regulator also directed the company and Mehta to provide all documents, information and explanations sought by the investigating authority within the stipulated timelines.
SEBI had appointed BDO India Services Pvt Ltd as forensic auditor on December 3, 2024. It said incomplete information and a lack of cooperation had delayed the forensic audit and investigation.
The regulator clarified that the confirmatory order does not constitute a final finding of violation. The investigation remains ongoing, with SEBI seeking further information to examine the allegations. Rajesh Exports, listed on the BSE and the National Stock Exchange, sells gold products in domestic and overseas markets and operates retail showrooms under the Shubh Jewellers brand.
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