Rajesh Exports Chairman and Managing Director Rajesh Mehta has rejected the Securities and Exchange Board of India (SEBI)’s interim order against the company, citing inaccuracies in the conclusions. Mehta stated that SEBI’s observations were preliminary and disputed the regulator’s findings.
Mehta emphasized that the company is currently reviewing the observations and will soon issue a detailed statement addressing the matter. Earlier in June, SEBI issued an interim order alleging financial irregularities, lack of cooperation, and possible revenue overstatement by Rajesh Exports and its promoter, Rajesh Mehta.
According to SEBI’s preliminary findings, Rajesh Exports may have misrepresented revenues totaling nearly Rs 15.15 lakh crore between FY21 and FY25, primarily through undisclosed financial statements of overseas subsidiaries. The regulator also alleged potential diversion of funds to Mehta’s personal accounts, estimating a shareholder wealth erosion of about Rs 12,726 crore.
SEBI’s order accused the company of obstructing access to key accounting systems, financial records, and supporting documents, hindering independent verification of reported transactions by investigators and auditors. As a result, SEBI has prohibited Rajesh Mehta from engaging in securities transactions involving Rajesh Exports and instructed the company to fully cooperate with the ongoing investigation.
