Stories
SEBI Upholds Restrictions on Rajesh Exports and Chairman Rajesh Mehta Over Revenue Discrepancy
- •SEBI has confirmed and continued its interim directions against Rajesh Exports Ltd and its chairman, Rajesh Mehta, following unresolved concerns over financial disclosures.
- •The market regulator highlighted a massive 99 percent discrepancy of nearly Rs 15 lakh crore between the company's consolidated revenue and its Swiss subsidiary Valcambi SA over five years.
- •SEBI rejected the company's explanation regarding reporting period differences, stating the justification was untenable and failed to rebut initial findings.
- •Rajesh Mehta remains restrained from dealing in Rajesh Exports securities directly or indirectly until further orders.
- •The company has been directed to fully cooperate with the ongoing investigation and the newly appointed forensic auditor.
Key Questions Answered
SEBI highlighted a nearly 99 percent disparity between Rajesh Exports' consolidated revenue of Rs 15.34 lakh crore and the standalone revenue of its Swiss subsidiary, Valcambi SA, which stood at Rs 3,027 crore over the five-year period from FY21 to FY25. The regulator rejected the company's explanation regarding reporting period differences as untenable.
SEBI confirmed that Rajesh Mehta will continue to be restrained from buying, selling, or otherwise dealing directly or indirectly in Rajesh Exports securities until further orders. The regulator noted that substantial company transactions were routed through his personal accounts without demonstrating proper legal authorization.
The noticees cited confidentiality obligations, data-protection requirements, foreign laws, and contractual arrangements to explain why some records could not be furnished. However, SEBI stated that the material provided did not establish that all reasonable steps had been taken to obtain or furnish the information through legally permissible means.
