Rajesh Exports Responds to SEBI Investigation Over Revenue Misrepresentation

Rajesh Exports, a prominent gold refiner and jewelry manufacturer in Bengaluru, is currently under investigation by SEBI for alleged financial misrepresentation totaling around Rs 15.15 lakh crore. The company claims its revenue figures are accurate and is working to resolve misunderstandings with SEBI by submitting necessary documentation. A shareholder complaint prompted the investigation, which has revealed potential inflation of reported revenues. SEBI's findings indicate significant issues with the company's financial records, raising serious concerns about transparency and compliance. As the situation unfolds, Rajesh Exports remains confident in its position and the validity of its financial statements.

By Narendra Chaudhary Jun 4, 2026, 15:39 IST

Rajesh Exports Addresses SEBI Concerns

Rajesh Exports, a gold refining and jewelry manufacturing firm based in Bengaluru, has responded to the Securities and Exchange Board of India (SEBI) regarding allegations of financial misrepresentation amounting to around Rs 15.15 lakh crore. The company asserts that its reported revenues are accurate and denies any inflation of figures. In a regulatory statement, Rajesh Exports indicated that there appears to be a misunderstanding between SEBI and the company, and they are currently working to clarify all relevant details by submitting necessary documentation.

"We believe that SEBI will reach a fair conclusion based on the verified documents we are providing," the company stated. A complaint from a shareholder was lodged with SEBI in March 2024, raising alarms about significant outstanding trade receivables on the company's balance sheet. Consequently, SEBI initiated a formal investigation covering the timeframe from April 2020 to March 2024 and appointed BDO India Services as a forensic auditor.

The investigation revealed that Rajesh Exports allegedly misrepresented consolidated revenues totaling approximately Rs 15.15 lakh crore, which constitutes 99.80% of the total consolidated revenue for the fiscal years 2020-21 through 2024-25. In a detailed interim order spanning 109 pages, SEBI reported that its forensic review uncovered initial evidence suggesting that between 97-99% of the company's reported revenue may have been artificially inflated, labeling the findings as "serious and unprecedented."

According to SEBI's findings, Rajesh Exports did not grant access to essential accounting systems, withheld vital financial documents, and failed to provide complete records requested by investigators and forensic auditors. The market regulator noted that the forensic auditor faced challenges in verifying substantial portions of the company's transactions due to missing or incomplete supporting records.