Indian authorities, including the Directorate of Enforcement and SEBI, found significant accounting and operational irregularities at Rajesh Exports, one of the country's largest gold companies, including inflated revenues, stock manipulation, and under-reported gold inventory.
Rajesh Exports Ltd will cooperate with a new forensic audit ordered by Sebi regarding allegations of inflating revenues by Rs 15.15 lakh crore. Chairman Rajesh Mehta denies impeding the audit, stating all requested documents were submitted and that Sebi suspects massive revenue inflation through overseas subsidiaries.
SEBI has banned Rajesh Exports promoter and CEO Rajesh Mehta from trading securities, alleging a massive Rs 15 lakh crore revenue misrepresentation and fund diversion scam. The Congress party highlighted LIC's 10.8% stake, questioning the acquisition's motives.
India's market regulator SEBI has issued an interim order against Rajesh Exports Ltd and its Chairman Rajesh Mehta, alleging large-scale financial misstatements, fund diversion, and serious lapses in corporate governance. SEBI noted a pattern of non-genuine transactions and questionable accounting, with revenues allegedly inflated by 97-99%. Mehta is restrained from dealing in REL securities.
Rajesh Exports Limited has denied SEBI's allegations of significant revenue inflation, calling the regulator's order interim and stating its declared revenues are accurate. The company cited a communication gap and is providing documents to SEBI, which alleges 97-99% revenue inflation based on a shareholder complaint and forensic review.
Sebi has banned Rajesh Mehta, promoter and CEO of Rajesh Exports, from trading the company's securities due to alleged financial irregularities and fund diversion. The regulator cited misstatements in financial accounts and lack of cooperation from the company and its auditors.
India's Sebi has barred Rajesh Mehta from trading Rajesh Exports securities, alleging 97-99% revenue inflation and non-cooperation. A fresh forensic audit is ordered.
