Rajesh Exports under SEBI scanner for Rs 15.15 lakh crore fraud, LIC holds 10% share

One of the email complaints sent to the Securities and Exchange Board of India (Sebi) in 2024 has ignited serious concerns for Rajesh Exports Limited (REL), one of India’s largest gold companies, regarding alleged financial discrepancies totalling approximately Rs 15.15 lakh crore.

The complaint, filed by a shareholder, focused on a technical issue regarding large trade receivables that had remained outstanding for years.

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After over two years, the complaint has led to an order by Sebi where the board alleged that the company may have misrepresented revenues, failed to disclose key subsidiary information, diverted funds through entities connected to its promoter and obstructed attempts to verify a substantial part of its overseas operations.

Bengaluru-based gold refiner and jewellery manufacturer Rajesh Exports, listed on both the NSE and BSE, has been booked by the market regulator Securities and Exchange Board of India (SEBI) for financial misrepresentation worth approximately Rs 15.15 lakh crore.

According to the SEBI order, REL misrepresented consolidated revenues aggregating to approximately Rs 15.15 lakh crore, representing 99.80 per cent of the total consolidated revenue for the period FY 2020-21 to FY 2024-25.

Sebi said its investigation and forensic review had uncovered prima facie evidence suggesting that about 97-99% of the company’s revenue may have been inflated, describing the findings as egregious and unheard of.

Life Insurance Corporation of India (LIC) holds around 10.80% of Rajesh Exports, a position it has maintained without a single share bought or sold since at least September 2023, as per shareholder data from the March 2026 quarter.

The Foreign institutional investors’ holdings stand at 14.26% by March 2026.

The order further noted that Rajesh Exports failed to provide access to key accounting systems, withheld critical financial records and did not furnish complete documentation sought by investigators and forensic auditors.

Rajesh Exports, in a stock filing, said there appeared to be a communication gap and confusion between the company and the regulator.

Sebi’s order was only an interim order and that no adverse conclusion had been reached, the company said, maintaining that its reported revenues were “correct” and not overstated.

According to the company’s results, between FY21 and FY25, Rajesh Exports reported around Rs 15.45 trillion of consolidated revenue. Out of this, about Rs 15.18 trillion was attributed to subsidiaries and step-down subsidiaries.