India’s ₹18,100-crore programme to build domestic battery cell manufacturing capacity is now at risk of losing a third beneficiary, after the Ministry of Heavy Industries signalled it may remove Rajesh Exports PLI entitlements in the wake of SEBI’s sweeping fraud allegations. The development is not an isolated corporate crisis — it marks another crack in a scheme that has delivered barely a fraction of its ambition.
When the ACC battery storage PLI was launched in 2021, four companies were selected: Ola Electric, Reliance New Energy, Hyundai Global Motors, and Rajesh Exports. Hyundai withdrew from its 20 GWh allocation during the first tender itself. As of late 2025, only 1.4 GWh of the targeted 50 GWh — roughly 2.8 per cent — had been commissioned on the ground, all by Ola Electric. All three remaining beneficiaries were penalised for missing the December 2024 plant-setup deadline, and each had requested a one-year extension from the ministry.
Against that backdrop, SEBI’s 109-page interim order dated June 3 alleged that Rajesh Exports inflated consolidated revenues by ₹15.15 lakh crore between FY21 and FY25 — amounting to roughly 99.8 per cent of the revenue attributed to its overseas subsidiaries, chiefly Swiss refiner Valcambi SA. The regulator barred promoter-chairman Rajesh Mehta from dealing in the company’s securities pending further proceedings and ordered a fresh forensic audit. The company has denied the allegations, calling the order interim and asserting that its reported revenues are accurate.
The stock hit back-to-back 5 per cent lower circuits on June 4 and 5, dropping to around ₹99 — a decline of more than 54 per cent from its 52-week high of ₹239. Sources within the ministry have told PTI there is a “strong view” that Rajesh Exports should be dropped from the scheme, with a final decision awaiting Minister H.D. Kumaraswamy’s review. The Ministry of Corporate Affairs is also reportedly considering a separate investigation into the company’s financial reporting.
For shareholders watching the broader sector, the relevant question is what happens to Rajesh Exports’ 5 GWh allocation if it is removed. When Hyundai exited, only 10 GWh was re-tendered and 10 GWh was reserved for a future round — meaning capacity is being reabsorbed slowly, not redistributed instantly. If Rajesh Exports follows, the scheme will have lost three of its four original awardees in some form, with realised capacity still in single digits against a 50 GWh target. The ACC PLI scheme’s credibility as a driver of India’s battery self-reliance now hinges almost entirely on whether Reliance and Ola can deliver at scale — and on time.
This article is journalism and educational commentary, not investment advice. The author is not a SEBI-registered Research Analyst. Figures should be independently verified against official filings before any financial decision.
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