Rajesh Mehta, the billionaire founder of Rajesh Exports, is at the center of a massive regulatory investigation by the Securities and Exchange Board of India (SEBI) regarding alleged revenue fraud totaling Rs 15.15 lakh crore. The probe, which centers on financial discrepancies between fiscal years 2021 and 2025, has sent shockwaves through Dalal Street and raised serious questions about the transparency of Indian firms with large overseas subsidiaries. The regulator’s interim order, issued on June 3, 2026, alleges that the vast majority of the company’s reported consolidated revenue may not exist, marking one of the largest potential cases of financial misrepresentation in the nation’s history.
Context: From Humble Beginnings to Global Player
Born in Bengaluru in 1964, Rajesh Mehta built his empire from a modest silver jewelry business started with a Rs 1,200 loan from his brother. His trajectory shifted significantly in 2015 when Rajesh Exports acquired the Swiss gold refinery Valcambi SA in an all-cash deal worth $400 million. This acquisition transformed the company into a global gold powerhouse, with revenues subsequently soaring to record heights and earning Mehta a spot among the world’s billionaires.
The Anatomy of the Allegations
The investigation began in March 2024 following a shareholder complaint regarding long-outstanding trade receivables. Forensic auditor BDO, appointed by SEBI, discovered that nearly all of the company’s reported revenue—between 97 and 99 percent annually—was attributed to overseas entities. When auditors attempted to reconcile these figures, they found a cumulative discrepancy of Rs 15.15 lakh crore, suggesting that the reported sales might be entirely fabricated.
Furthermore, the investigation uncovered bizarre inconsistencies, such as reported transactions worth Rs 22,000 crore with a firm named Affluence Shares, which categorically denied ever having a business relationship with Rajesh Exports. Investigators also flagged an unverified investment of Rs 1,035 crore in African gold mining assets, for which the company could produce no supporting documentation or valuation reports.
Personal Finances and Corporate Governance
SEBI’s findings extend to allegations of personal enrichment, asserting that company funds were diverted into accounts linked to Mehta for personal derivative trading. The regulator characterized Mehta as the primary decision-maker who maintained tight control over financial operations, effectively blurring the lines between corporate capital and personal wealth. Throughout the process, the company and its auditors allegedly hindered the investigation by failing to provide key documents, leading SEBI to conclude that the non-cooperation was an intentional effort to suppress material facts.
Implications for the Market and Investors
The impact of this probe has been immediate and severe. Rajesh Exports shares have plummeted, erasing significant shareholder wealth and dragging down institutional investors like the Life Insurance Corporation of India (LIC). Banks, including Canara Bank, have begun classifying their exposure to the firm as stressed assets, signaling a wider ripple effect across the banking sector.
Investors and analysts are now forced to re-evaluate how they assess companies with complex, cross-border corporate structures. Future regulatory scrutiny is expected to tighten around the audit processes of overseas subsidiaries, with a focus on verifying the existence of reported assets and the legitimacy of foreign counterparties. Observers will be watching to see if the company’s formal defense can provide the missing documentation required to clear these allegations, or if this marks the beginning of a long legal unraveling for one of India’s most prominent jewelry exporters.
