SEBI Alleges Massive Revenue Inflation by Rajesh Exports, Company Denies Wrongdoing
India’s market regulator, the Securities and Exchange Board of India (SEBI), has alleged that gold exporter Rajesh Exports overstated the revenue of its Swiss refining subsidiary, Valcambi, by nearly $159 billion between April 2020 and March 2025. According to SEBI’s preliminary findings, the company reported revenue of 15.15 trillion rupees that was largely attributed to Valcambi, despite the subsidiary’s standalone financial statements showing significantly lower revenues. Rajesh Exports has rejected the allegations, stating that its financial disclosures are accurate and that the regulator may have misunderstood certain information.
The investigation has drawn attention due to the unprecedented scale of the alleged misreporting and the fact that India’s state-owned insurer, LIC, holds an 11% stake in the company. Rajesh Exports Chairman Rajesh Mehta maintained that the company’s financial statements are correct and said the firm would continue cooperating with the regulator. Shares of the Mumbai-listed company have fallen around 10% since SEBI’s order became public. Valcambi, one of the world’s largest precious metals refiners acquired by Rajesh Exports in 2015, declined to comment on the matter.
SEBI’s probe also raised concerns about alleged investments in African gold mines and transactions it described as fictitious. The regulator said it found no supporting documentation for reported investments worth 10.35 billion rupees in African mining assets. Additionally, SEBI alleged that Rajesh Exports recorded over 114 billion rupees in sales and purchases through a local broker without evidence of genuine transactions or banking links. The investigation began in 2024 following complaints about large outstanding trade receivables, with a forensic audit reportedly unable to verify much of the company’s reported financial data due to insufficient documentation.
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