India markets regulator finds $158 billion of misrepresented numbers at Rajesh Exports

Rajesh Exports

03/06/2026 15:43

By Jayshree P Upadhyay
MUMBAI, June 3 (Reuters) - The India markets regulator in an order on Wednesday alleged that jewellery maker Rajesh Exports REXP.NS inflated its revenue scale over years, largely via unverified overseas entities, to the tune of 15.15 trillion rupees ($158.30 billion). 
The Securities and Exchange Board of India (SEBI) has barred the company and its owner from the securities markets till it completes its investigation. 
Rajesh Exports and the company's owner did not immediately respond to a Reuters request for comment.
Here are the key violations flagged in the order - 
 The regulator said 97%–99% of Rajesh Exports' consolidated revenue came from overseas subsidiaries, particularly Switzerland-based Valcambi SA. But the company systematically did not disclose its subsidiaries' financials in the public domain
Valcambi SA was projected as the principal operating entity, but disclosed negligible standalone revenues in its audited financial statements
By doing so, Rajesh Exports misrepresented approximately 15.15 trillion rupees, which represented 99.80% of its revenues from subsidiaries between fiscal 2020-21 and 2024-25.
Per the order, Rajesh Exports recorded 114.87 billion rupees in sales and 114.88 billion rupees in purchases with an entity, Affluence Shares and Stocks Private Limited, but Affluence denied any such transactions.
The regulator alleged that these were non‑genuine entries linked to owner Rajesh Mehta’s personal derivative trades, used to inflate turnover without real economic activity.
SEBI alleged that Rajesh Exports routed company funds worth 3.39 billion rupees to the owner Mehta’s personal accounts, including for derivative trades, without board or audit committee approval and without proper related‑party disclosures.
A total of 9.26 billion rupees was routed without approvals or disclosures.
SEBI has estimated wealth erosion of the company's shareholders, including small shareholders, at 127.26 billion rupees due to the misrepresentation and fund diversion.



($1 = 95.7050 Indian rupees)

 (Reporting by Jayshree  P Upadhyay; Editing by Devika Syamnath)
 ((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters Messaging: Twitter: @jaysh88))