Rajesh Exports Shares Rise 5% Amidst ₹15.15 Lakh Crore Fraud Allegations

After a devastating 30% crash over seven consecutive sessions, Rajesh Exports shares hit the upper circuit on Monday, rising 5% to reach ₹80.23 on the NSE. This sudden recovery follows intense market volatility triggered by a massive investigation by the Securities and Exchange Board of India (SEBI) into alleged revenue inflation.

The SEBI Interim Order and Allegations of Massive Revenue Inflation

The turbulence began following an interim order from SEBI, which surfaced after a shareholder complaint in March 2024. SEBI’s forensic review has produced what it describes as "egregious and unheard of" evidence, suggesting that approximately 97% to 99% of the company's reported revenue may have been inflated. The scale of this alleged discrepancy is staggering, pointing toward a potential ₹15.15 lakh crore revenue inflation saga.

As part of its regulatory action, 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 Denies Fraud, Cites "Communication Gap"

In a series of exchange filings, Rajesh Exports has vehemently denied any wrongdoing, maintaining that its declared revenues are accurate. The company has attributed the discrepancy to what it calls a "communication gap and confusion" between itself and the market regulator.

Specifically, the company clarified that the 97% difference cited by SEBI stems from a technical misunderstanding. Rajesh Exports claims that SEBI mistakenly considered the EBITDA of Valcambi instead of the actual Revenue, leading to the perceived inflation. The company expressed confidence that once authenticated documents are submitted, SEBI will arrive at the correct conclusion.

Promoter Rajesh Mehta Responds to Investigation

Founder and Chairman Rajesh Mehta has also stepped forward to defend the company's integrity. In a recent interview, Mehta denied allegations that the company had hindered the audit process, asserting that Rajesh Exports has been completely forthcoming with investigators.

Regarding the decision to contest the interim order, Mehta took a cautious stance, stating there is currently no reason to seek legal recourse. "There is no fine, no penalty, no coercive action in this order. Why should we challenge it?" he remarked, adding that any discrepancies found by SEBI would simply be reconciled as more documents are reviewed.

A Deeper Look at the Stock's Performance

Despite the 5% jump on Monday, the long-term outlook for Rajesh Exports remains grim. The stock has seen a massive erosion of value, tumbling 55% in 2026 so far and losing 87% of its value over the last three years. This collapse has seen the company's market capitalisation shrink significantly to just ₹2,369 crore.

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