Concerns Rise Over LIC's Stake in Rajesh Exports Amid Financial Misrepresentation Allegations
Financial Misrepresentation Sparks Political Outcry
The ruling Bharatiya Janata Party (BJP) is facing criticism from the opposition regarding a significant financial misrepresentation involving Rajesh Exports, a gold refining and jewelry manufacturing company based in Bengaluru. The alleged misrepresentation amounts to approximately Rs 15.15 lakh and includes a 10% shareholding by the Life Insurance Corporation (LIC). Priyanka Chaturvedi, a former Rajya Sabha member and leader of Shiv Sena (UBT), took to social media platform X to express her concerns, noting that LIC's stake in Rajesh Exports has increased dramatically since 2016.
Chaturvedi shared a report detailing the growth of LIC's investment in Rajesh Exports over the years, revealing that its stake rose from 1.99% in March 2016 to 11.22% in March 2022, and is projected to reach 10.8% by 2026. She emphasized the need for a thorough audit of LIC's equity investments, stating, "As one of the millions of Indians holding LIC policies, I demand transparency on how and why LIC invests public funds in companies that may not be trustworthy. This warrants public scrutiny."
In response to the ongoing investigation by SEBI into Rajesh Exports' financial irregularities, Congress leader Jairam Ramesh remarked, "This figure is astonishing. Investigations are ongoing, and we await a comprehensive report." He pointed out the troubling fact that LIC holds approximately 10.8% of Rajesh Exports, questioning how such a significant fraud could go unnoticed by LIC, which has a considerable stake in the company. Ramesh raised concerns about whether LIC's investment decisions were influenced by the current political environment.
According to shareholder data from the March 2026 quarter, LIC's stake in Rajesh Exports has remained stable, with no shares bought or sold since at least September 2023. Meanwhile, foreign institutional investors (FIIs) held 14.26% of the company as of March 2026, a decrease from 17.60% in March 2023. The investigation was initiated following a shareholder complaint in March 2024, which highlighted concerns regarding substantial outstanding trade receivables in the company's financial records. SEBI has since launched a formal inquiry covering the period from April 2020 to March 2024 and has appointed forensic auditors from BDO India Services.