A shareholder complaint filed with the Securities and Exchange Board of India in March 2024 has now cascaded into a full-blown governance crisis for Rajesh Exports — and SEBI’s 109-page interim order, issued on June 3, 2026, is the latest chapter in a timeline investors should trace carefully. The stock hit its 5 per cent lower circuit for a third consecutive session on Monday, closing at ₹94.50 on the BSE, a cumulative fall of roughly 14 per cent since the Rajesh Exports SEBI order landed.
The progression is striking. SEBI launched a formal investigation in October 2024 after that initial complaint flagged large trade receivables outstanding for over two years. The regulator then engaged forensic auditor BDO to scrutinise the company’s financial disclosures. The resulting interim order alleges that consolidated revenues of approximately ₹15.15 lakh crore reported between FY21 and FY25 — nearly 99.8 per cent of the total attributed to overseas subsidiaries including Valcambi SA — may have been inflated. Promoter and Chairman Rajesh Mehta has been barred from dealing in the company’s securities pending further proceedings.
The fallout is now spreading beyond the stock price. The Ministry of Heavy Industries is reportedly weighing the removal of Rajesh Exports from the production-linked incentive scheme for advanced chemistry cell battery storage, with a decision expected after Minister H.D. Kumaraswamy reviews the SEBI findings. Separately, the Ministry of Corporate Affairs may initiate its own probe into governance lapses. For institutional shareholders, the stakes are material — LIC holds approximately 10.8 per cent of the company, and SEBI itself has estimated shareholder wealth erosion linked to the alleged misconduct at up to ₹12,726 crore.
Rajesh Mehta has denied the allegations, asserting that SEBI confused the subsidiary’s EBITDA with revenue and that the company submitted 300–400 gigabytes of supporting documentation which the regulator may not have fully reviewed. The company has said it will resubmit relevant files within 15 days. Whether this resolves the discrepancy or deepens it will likely hinge on the fresh forensic audit SEBI has ordered — and on whether the PLI scheme exclusion becomes final, which would undermine the firm’s pivot from gold refining into battery manufacturing. Shareholders waiting for clarity should watch the forensic audit outcome and MHI’s formal decision in the coming weeks.
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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