Rajesh Exports Shares Rally 5% Amid Massive ₹15.15 Lakh Cr Fraud Allegations

After a brutal 30% collapse in just seven consecutive trading sessions, Rajesh Exports shares found a brief reprieve, hitting the upper circuit with a 5% jump on Monday. The stock's volatility follows a bombshell interim order from the Securities and Exchange Board of India (SEBI) regarding a suspected massive revenue inflation scheme.

The SEBI Investigation and the ₹15.15 Lakh Crore Allegation

The turbulence began when SEBI issued an interim order following a shareholder complaint received in March 2024. The regulator’s forensic review suggested "egregious and unheard of" discrepancies, with prima facie evidence indicating that approximately 97% to 99% of the company's revenue might have been inflated. This alleged misreporting involves a staggering sum of ₹15.15 lakh crore.

In response to these findings, SEBI has restrained the company's promoter, Rajesh Mehta, from buying, selling, or dealing in any securities of Rajesh Exports until further orders. The regulator has also mandated that the company cooperate fully with the ongoing investigation to determine the veracity of these claims.

Rajesh Exports Defends Revenue Integrity

The company has hit back at the allegations, characterizing the situation as a "communication gap and confusion" between the regulator and the firm. In an exchange filing, Rajesh Exports maintained that its declared revenues are accurate and that no overstatement of earnings has occurred.

According to the company, the massive 97% discrepancy cited by SEBI stems from a fundamental misunderstanding of data. Rajesh Exports claims that SEBI mistakenly considered the EBITDA of Valcambi (a subsidiary/associate) instead of the actual Revenue, leading to the perceived gap. The company is currently in the process of submitting authenticated documents to reconcile these figures and clear the air.

Promoter Rajesh Mehta Responds to Allegations

Founder and Chairman Rajesh Mehta has firmly denied claims that the company has obstructed the audit process. Speaking to PTI, Mehta asserted that the company has been entirely forthcoming, stating, "We have submitted everything we were asked for."

Addressing the SEBI interim order, Mehta noted that since the order currently imposes no fines, penalties, or coercive actions, the company sees no immediate reason to legally contest it. He expressed confidence that the reconciliation of documents would eventually clarify the situation.

A Drastic Decline in Market Value

Despite the recent 5% recovery to Rs 80.23 on the NSE, the long-term outlook for the stock remains grim. The company has faced a severe erosion of investor wealth, with shares tumbling 55% so far in 2026. Looking at a broader horizon, the stock has crashed 87% over the last three years, leaving its market capitalization at a mere Rs 2,369 crore.

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