Rajesh Exports: Sebi flags ₹15.15 lakh cr revenue

What triggered the latest scrutiny

Jewellery maker Rajesh Exports Ltd is facing fresh regulatory scrutiny after the Securities and Exchange Board of India (Sebi) issued an interim order alleging revenue misrepresentation and diversion of company funds over a multi-year period. The development drew wider public attention on Thursday when former Congress leader Sanjay Jha posted on X (formerly Twitter), citing a Reuters report and alleging the company “faked revenue” of USD 158 billion. Jha’s post framed the issue as potentially one of the largest market scandals, and also claimed that LIC had reportedly invested, without providing details.

Sebi’s interim findings and the public commentary added to investor anxiety in a stock that has already corrected sharply in recent months. Rajesh Exports has responded to the interim order by disputing the allegation of revenue overstatement and saying it is submitting documents to clarify the matter.

Sanjay Jha’s post and the Reuters reference

In his X post dated June 4, 2026, Sanjay Jha wrote that Rajesh Exports, “according to Reuters,” faked revenue of USD 158 billion, which he equated to about ₹1,550,000 crore. He alleged the revenue “did not exist” and questioned how such a situation could go unnoticed “including Sebi, for five years.” He also wrote that LIC had reportedly invested, though the post did not include a source beyond the Reuters reference.

The post circulated alongside a video and hashtags, and it amplified the regulatory action into a broader debate about market oversight. The company itself did not address the political commentary, but responded to Sebi’s interim order and media coverage.

What Sebi alleged in its interim order

Sebi’s interim order alleged that Rajesh Exports misrepresented a significant portion of its revenue over a five-year period and diverted company funds without requisite approvals and disclosures. A key element of the order, as noted by Sebi, was the way the group’s operating structure was presented.

The regulator noted that Valcambi SA was presented as the group’s principal operating entity, but its audited standalone financial statements reflected negligible revenues. Based on its findings, Sebi alleged that Rajesh Exports misrepresented approximately ₹1,515,000 crore, or 99.80% of the revenues generated by its subsidiaries between FY21 and FY25.

Valcambi SA and the subsidiary revenue question

Sebi’s reference to Valcambi SA goes to the heart of how consolidated revenue and subsidiary performance were portrayed. According to the regulator, the entity was presented as a principal operating unit, yet its standalone audited statements showed negligible revenues.

The interim order’s focus on subsidiary-level revenue suggests the regulator is examining whether reported topline figures were supported by identifiable operating activity at key entities. The allegations, as stated, are about misrepresentation of revenues generated by subsidiaries over FY21 to FY25.

Affluence transactions and “non-genuine” entries allegation

Sebi also flagged transactions involving Affluence Shares and Stocks Pvt Ltd. According to the interim order, Rajesh Exports reported sales of ₹11,487 crore and purchases of ₹11,488 crore with Affluence.

However, the regulator said Affluence reportedly denied carrying out any such transactions. Sebi alleged these were non-genuine accounting entries linked to an individual identified as “Mehta” in the order and his personal derivatives trading activities. The order alleged these entries were used to inflate turnover without underlying economic substance.

Alleged diversion of funds and disclosure lapses

Beyond revenue recognition and turnover, Sebi alleged diversion of company funds. The regulator stated that Rajesh Exports routed ₹338.90 crore of company funds to accounts linked to Mehta, including for personal derivative trades.

Sebi alleged the transfers were made without board or audit committee approvals and without proper related-party disclosures. The regulator further stated that the alleged misrepresentation of financial statements and diversion of funds resulted in shareholder wealth erosion of ₹12,725.53 crore, including losses borne by retail investors.

Rajesh Exports’ response to Sebi and media reports

Rajesh Exports said the order is interim and that Sebi has not reached any adverse conclusion. The company stated that its revenues are correct and that there is “no over stating of revenues.” It added that there appeared to be “some type of communication gap and confusion between Sebi and the company.”

The company said it is in the process of clarifying all aspects to Sebi by submitting required and relevant documents, and that it is confident Sebi will arrive at the correct conclusion based on authenticated documents. Rajesh Exports also said it rejects “adverse media reports” and will issue a media clarification to address what it described as unnecessary speculation.

Stock market reaction: price fall and recent trend

Shares of Rajesh Exports fell 5% to close at ₹104.65 on Thursday. At that level, the stock was down 44.63% over the past six months, reflecting sustained selling pressure even before the latest interim order.

The immediate decline highlights how regulatory actions and accounting-related allegations can quickly affect investor risk appetite. It also shows how uncertainty around financial statements can translate into sharp moves, particularly when allegations involve a large share of reported revenues.

Key numbers at a glance

Why comparisons with the Harshad Mehta scam keep resurfacing

Jha’s post invoked Harshad Mehta, a name associated with the 1992 securities scam. The background material referenced in the provided text describes how that fraud involved exploitation of inter-bank transactions, including ready-forward deals and fake bank receipts, with diverted funds being pushed into the stock market.

The comparison is rhetorical, but it reflects how major allegations about financial reporting, market oversight, and investor harm often trigger memories of earlier failures in systems and controls. In this case, the Sebi action is an interim order, and Rajesh Exports has disputed the core allegation that revenues were overstated.

What investors will watch next

The near-term focus is on Sebi’s next steps after reviewing documents the company says it is submitting. Investors are also likely to track any further disclosures from Rajesh Exports, including the media clarification it said it would issue.

For the market, the central issues are the verifiability of revenues attributed to subsidiaries, the nature of the Affluence entries described by Sebi, and the governance processes around fund movements and related-party disclosures. The situation remains a developing story, with the interim order and the company’s rebuttal forming the current public record.

Conclusion

Sebi’s interim order has placed Rajesh Exports under sharp scrutiny, alleging misrepresentation of ₹1,515,000 crore of subsidiary revenues over FY21 to FY25 and raising questions about certain transactions and fund flows. The company has denied revenue overstatement, called the order interim, and said it is working to clarify matters with authenticated documents. Market reaction was immediate, with the stock falling 5% to ₹104.65 on Thursday and extending a steep six-month decline. The next milestones will be further filings, clarifications, and any follow-up directions from Sebi as the regulatory process continues.