Home / Business and Economy / Sebi Alleges 99% Revenue Inflation at Rajesh Exports
Sebi Alleges 99% Revenue Inflation at Rajesh Exports
4 Jun
Summary
- Sebi alleges Rajesh Exports inflated revenues by 97-99%.
- Promoter Rajesh Mehta barred from trading Rajesh Exports shares.
- Company accused of persistent non-cooperation with investigators.
The Securities and Exchange Board of India (Sebi) has issued an interim order against Rajesh Exports and its promoter, Rajesh Mehta, over alleged large-scale financial misrepresentation. Sebi's investigation prima facie indicates that the company's revenues may have been inflated by an "egregious and unheard of" 97-99% between April 2020 and March 2024.
As an immediate measure, Sebi has barred Rajesh Mehta from trading in Rajesh Exports' securities. The regulator also highlighted the company's persistent non-cooperation, including failure to provide access to accounting systems and critical financial records, significantly hindering the investigation.
Sebi's concerns extend to the financial reporting of overseas subsidiaries in Singapore and Switzerland. The market regulator has ordered a fresh forensic audit and directed Rajesh Exports to provide all pending information within 30 days to ensure investor protection and market integrity.
