Market regulator SEBI has issued an interim ex-parte order against Rajesh Exports Limited (REL) and its Chairman and Managing Director Rajesh Mehta. The order alleges financial misrepresentation, fund-routing irregularities, and failures in corporate governance during an ongoing investigation. SEBI found evidence of non-genuine transactions, improper accounting practices, diversion of company funds, and inadequate disclosures to investors.
The order states that Rajesh Exports misrepresented consolidated revenues of approximately Rs 15.15 lakh crore between FY2020-21 and FY2024-25. These revenues accounted for nearly 99.8% of the company’s total reported consolidated revenue during the period. The regulator highlighted manipulated financial statements, improper accounting practices, and non-disclosure of related-party transactions.
SEBI also alleged that Rajesh Exports misrepresented standalone revenues worth Rs 12,557 crore during FY21-FY24. It pointed out derivative transactions undertaken by Rajesh Mehta in his personal capacity, which were recorded as company sales and purchases amounting to over Rs 11,400 crore each. The order raised concerns about incorrect classification of exchange fluctuation gains and losses and interest income from mutual funds.
The market regulator questioned the company’s claims regarding investments in gold mines in Africa. SEBI expressed inability to verify the disclosures made by Rajesh Exports regarding investments in African gold mines. Additionally, SEBI raised red flags over the routing of company funds through the personal bank accounts of Rajesh Mehta and Siddharth Mehta, citing lack of disclosure and approval from the board of directors and audit committee.
