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Shares of gems and jewellery steadfast Rajesh Exports Ltd (REL) further dropped 5% to deed the little circuit bounds connected Friday (June 5, 2026) amid concerns that the institution allegedly inflated its consolidated revenues by much than ₹15 lakh crore implicit 5 years by attributing monolithic revenues to overseas subsidiaries.
Extending its erstwhile day's decline, the banal further declined 4.97% to deed the little circuit bounds of ₹99.45 connected the BSE.
At the NSE, the banal tumbled 4.99% to ₹98.73 — the lowest trading permissible bounds for the day.
Shares of Rajesh Exports had tumbled 5% to deed the little circuit bounds connected Thursday (June 4, 2026) also.
Rajesh Exports Ltd allegedly inflated its consolidated revenues by much than ₹15 lakh crore implicit 5 years by attributing monolithic revenues to overseas subsidiaries, peculiarly Switzerland-based Valcambi SA, contempt the subsidiary's audited standalone fiscal statements showing lone a fraction of those amounts, according to an interim bid by Sebi.
The regulator has raised superior concerns implicit what it described arsenic a prima facie misrepresentation of the company's fiscal position, noting that astir full of REL's reported revenues were attributed to overseas subsidiaries whose fiscal statements were not made publically available.
According to SEBI bid passed connected Wednesday (June 3, 2026), REL reported consolidated revenues of astir ₹15.18 lakh crore betwixt FY21 and FY25. Of this, astir ₹15.15 lakh crore, oregon 99.8% of the revenues attributed to subsidiaries, could not beryllium reconciled with the audited standalone fiscal statements of Valcambi SA, the group's main operating subsidiary.
Valcambi SA, a precious metals refiner, earns gross from refining services and the merchantability of branded bullion products. However, its audited standalone accounts, prepared nether Swiss instrumentality and audited by KPMG SA, recorded lone processing charges oregon worth summation arsenic revenue.
Sebi recovered a stark mismatch betwixt these audited figures and the revenues reported by Rajesh Exports and its intermediary holding company, Global Gold Refineries (GGR).
For instance, successful calendar twelvemonth 2023, Valcambi SA reported a standalone gross of astir ₹543 crore, portion GGR and REL reported consolidated revenues of astir ₹2.93 lakh crore and ₹2.81 lakh crore, respectively. As a result, Valcambi's standalone revenues accounted for little than 0.5% of the revenues reported astatine the consolidated level.
The regulator questioned however a holding institution with nary autarkic operating activities could recognise gross transaction values moving into respective lakh crore rupees erstwhile the operating subsidiary itself recognised lone processing fees arsenic revenue.
When asked to explicate the discrepancy by SEBI, REL argued that Valcambi accounted lone for processing income, whereas GGR recognised the gross worth of golden transactions on with processing charges.
Sebi, however, recovered the mentation prima facie untenable. It noted that Valcambi's audited fiscal statements did not recognise the gross worth of golden transactions arsenic gross and reflected lone processing income.
The bid besides noted that though 97-99% of REL's consolidated revenues were claimed to originate from overseas subsidiaries, peculiarly Valcambi SA, the institution had failed to upload the fiscal statements of immoderate subsidiary oregon step-down subsidiary connected its website and did not furnish captious underlying data, including lawsuit and vendor details, contempt repeated summons from investigators.
SEBI Whole Time Member Kamlesh Chandra Varshney said REL had prima facie misrepresented astir ₹15,15,385 crore of revenues attributed to subsidiaries during FY21-FY25, thereby portraying an inflated and misleading representation of its operational scale, consolidated fiscal presumption and fiscal wellness earlier investors and the securities market.
Calling the evident ostentation of 97-99% of the company's revenues "egregious and unheard of", the regulator said the gravity of the findings warranted interim directions pending completion of the investigation.
Accordingly, SEBI barred Rajesh Exports' 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 connection connected Thursday (June 4, 2026), Rajesh Exports denied immoderate fiscal irregularities, saying its reported revenues were close and that determination seemed to beryllium a connection spread betwixt the markets regulator and the firm.
"The revenues declared by the institution are correct, and determination is nary over-stating of revenues. There seems to beryllium immoderate benignant of connection spread and disorder betwixt Sebi and the company," Rajesh Exports said successful a BSE filing.
