Rajesh Exports' Accounting Fraud Investigation Unfolds The Indian securities regulator, SEBI, has launched a sweeping investigation into Rajesh Exports Limited (REL), alleging massive financial misrepresentation that could reshape the company’s valuation and reputation. The probe centers on alleged revenue inflation spanning five years, with SEBI claiming REL may have overstated its earnings by nearly ₹15 lakh crore. The case has sent shockwaves through the market, with REL’s stock plummeting after the regulator issued an interim order citing irregularities in the company’s financial disclosures. REL, a gold refiner and jewelry manufacturer that went public in 1995, has seen its market cap fluctuate dramatically. In 2022, it was classified as a large-cap stock with a valuation exceeding ₹20,000 crore. However, by 2025, it had slipped into mid-cap territory, and since January 2026, it has fallen into the small-cap category, with a market cap below ₹5,000 crore. This decline coincided with the regulator’s scrutiny, which began after a shareholder raised concerns about discrepancies in REL’s financial records. The investigation started with a seemingly ordinary complaint from a shareholder in 2024, who noted that REL’s books showed massive unpaid customer dues exceeding two years. SEBI’s inquiry revealed that the company’s financial records were incomplete, with forensic auditors finding only 2% of requested purchase documentation and 35% of sales transactions properly supported. This lack of transparency raised red flags about the legitimacy of REL’s reported revenues. REL’s financial statements claimed consolidated revenues of ₹7.6 lakh crore in FY26, with annual figures between ₹2.5 lakh crore and ₹4.2 lakh crore from FY21 to FY25.#sebi #rajesh_exports #rel #valcambi_sa #rajesh_mehta
