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The Congress connected Thursday (June 4, 2026) flagged that LIC owns astir 10.8% of Rajesh Exports, that is presently nether SEBI scanner, and said this raises the question of whether LIC's acquisition of specified a "substantial stake" was driven by instructions from the ruling ecosystem.
Congress person Jairam Ramesh said SEBI has, successful an interim study dated June 3 2026, alleged a "gigantic scam" involving a high-flying institution called Rajesh Exports which is successful the golden refining and jewellery business.
SEBI says that determination has been a monolithic misrepresentation of revenues spanning a 5 twelvemonth play 2020/21-2024/25 that could magnitude to a staggering ₹15 lakh crore, Mr. Ramesh pointed out.
"This is simply a mind-boggling number. Investigations are continuing and a last study is awaited," the Congress wide caput in-charge communications said.
What is peculiarly disturbing is that LIC owns astir 10.8% of Rajesh Exports, helium said.
Banks excessively person sizeable vulnerability to this intelligibly politically influential company, Mr. Ramesh added.
How could LIC person missed specified a immense fraud taking spot successful a institution successful which it has a important stake, the Congress person asked.
"This raises the question of whether LIC's acquisition of specified a important involvement was driven by instructions from the ruling ecosystem," Mr. Ramesh said.
Capital markets regulator SEBI connected Wednesday (June 3) barred Rajesh Exports Ltd's promoter and CEO Rajesh Mehta from dealing successful the company's securities, alleging large-scale misrepresentation of fiscal statements and diversion of funds.
The regulator besides directed the institution to marque existent and just disclosures of their fiscal statements, related enactment transactions and different disclosures nether the Listing Obligations and Disclosure Requirements (LODR) regulations.
In a 109-page interim order, SEBI said its probe has revealed misrepresentation successful fiscal statements arsenic good arsenic instances of routing and layering of funds done idiosyncratic accounts and related entities without capable disclosures oregon supporting documentation.
The markets watchdog said the institution was issued repeated summons and fixed respective opportunities to furnish existent and just fiscal statements, implicit records explaining the end-use, concern rationale and eventual beneficiaries of specified money flows, but determination was nary satisfactory response.
SEBI besides flagged non-cooperation by REL's statutory auditors. According to the order, the auditors, during the deposition, promised to supply audit moving papers, but yet failed to bash so.
The regulator said specified sustained non-cooperation is itself indicative of an intent to suppress worldly accusation and obstruct regulatory inquiry.
SEBI further observed that among the aberrations prima facie noted successful the matter, astir 97-99% of REL's gross was inflated, are egregious and unheard of.
The bid held that Mehta was the cardinal decision-making authorization wrong REL and exercised important power implicit the day-to-day affairs and fiscal operations of the institution and its subsidiaries.
Therefore, the regulator restrained Mehta from buying, selling oregon dealing successful securities of REL, either straight oregon indirectly, until further orders.
SEBI besides directed REL and Mehta (noticees) to cooperate with the investigating authorization and furnish each documents and explanations sought wrong 30 days.
It further ordered the assignment of a caller forensic auditor to implicit the audit of the company's books aft noting inadequate practice during the earlier forensic exercise.
