It is the kind of number that stops you mid-sentence. Fifteen lakh, fifteen thousand crore rupees — more than the GDP of many nations. And according to India's market regulator SEBI, that is approximately how much Rajesh Exports, once celebrated as the world's largest gold processor, may have fabricated in revenues over just five years.
On June 3, 2026, SEBI issued a 109-page interim order alleging massive misrepresentation of financial statements at Rajesh Exports and its promoter Rajesh Mehta. The regulator alleged that the company inflated its consolidated revenues by ₹15.15 lakh crore between FY2021 and FY2025 — a figure that accounts for the overwhelming bulk of everything the company reported earning over that period. Rajesh Exports has denied all allegations. The investigation is ongoing and no final order has been issued.
How the Alleged Fraud Worked
The mechanics were built around one entity: Valcambi SA, a Switzerland-based subsidiary that contributed 97 to 99 percent of the group's consolidated revenue. SEBI alleged that Valcambi's standalone audited statements reflected revenues dramatically lower than what appeared in the group's consolidated accounts. The regulator further alleged that Rajesh Exports recorded gross gold transaction values as revenue without sufficient supporting documentation or verifiable customer records — enormous numbers on paper with no auditable trail beneath them.
SEBI also found evidence of funds being routed and layered through personal accounts and related entities without adequate disclosures. The company was issued repeated summons and given several opportunities to furnish complete records but did not comply satisfactorily.
SEBI has now barred Rajesh Exports and Mehta from the securities market until further orders and directed the appointment of a new forensic auditor. The company has 30 days to submit its defence.
🚨Even Harshad Mehta would fear this one.
— Bhanu Pathak (@bhanu_pathak_) June 4, 2026
News: SEBI has alleged that Rajesh Exports misrepresented revenue worth ₹15.15 LAKH CRORE.
• Alleged revenue inflation: ₹15.15 lakh crore
• Allegedly went unnoticed for nearly 5 years
• Listed company on Indian stock exchanges
•… pic.twitter.com/bQrMnbGht1
What Triggered the Investigation
According to Outlook Business, it was not a regulator, auditor, or institutional investor who first raised the alarm — it was a single shareholder complaint filed with SEBI in March 2024, flagging trade receivables outstanding for over two years. SEBI initiated a formal investigation in October 2024 and engaged forensic auditor BDO. Questions had reportedly surfaced as early as 2023 with no formal action until that complaint arrived.
LIC and the Cost to Ordinary Indians
Business Standard reports that LIC holds a 10.8 percent stake in Rajesh Exports as of March 2026 — making it the company's largest public shareholder. LIC's stake is now worth approximately ₹347 crore, down from ₹637 crore at the start of 2026. Since LIC is funded by ordinary policyholders' premiums paid by millions of working Indians, this is not an abstract institutional loss. It is real money belonging to real people.
The Federal reports that total shareholder wealth erosion across all investors could reach ₹12,726 crore. Canara Bank has additionally classified its lending exposure to Rajesh Exports as a stressed asset following repayment defaults — widening the blast radius beyond equity investors alone.
The Bigger Question
Rajesh Exports has argued there is little incentive to inflate revenues while leaving profits unchanged, since doing so simply compresses margins — a point worth weighing as proceedings continue.
But the structural failure here is hard to ignore regardless of the final verdict. Statutory auditors certified these accounts for five years. Institutional investors with full research teams held large positions. Regulators did not act until a private citizen wrote a letter.
As governance experts told Business Standard, public financial institutions managing ordinary people's money should be expected to exercise heightened vigilance — especially when a stock is in prolonged decline and regulatory concerns are visible.
The final chapter of the Rajesh Exports story is yet to be written. What is already clear is that the version told for five years in certified financial statements may not have been the real one.
Note: This article is based on SEBI's interim order. All revenue inflation figures are allegations. Rajesh Exports denies the findings. This is not investment advice.