Rajesh Exports Rejects SEBI Findings, Chairman Says Detailed Response Will Be Submitted Soon

Mumbai: Rajesh Exports Chairman and Managing Director Rajesh Mehta has strongly disagreed with the findings of the interim order issued by the Securities and Exchange Board of India (SEBI).

Speaking to NDTV Profit, Mehta said the regulator’s observations were only preliminary in nature and did not accurately reflect the facts. He stated that the company is carefully examining the order and will soon issue a detailed response addressing the allegations.

“It is an interim order, findings are not accurate,” Mehta said.

SEBI Raises Serious Concerns

Earlier this month, SEBI issued an interim order against Rajesh Exports and its promoter Rajesh Mehta. The market regulator alleged several financial irregularities and claimed that the company did not fully cooperate during the investigation process.

According to SEBI’s preliminary findings, Rajesh Exports may have overstated revenues worth nearly ₹15.15 lakh crore between FY21 and FY25. The regulator said a large part of these transactions was linked to overseas subsidiaries whose financial statements were not publicly available.

The findings are part of an ongoing investigation and are yet to reach a final conclusion.

Allegations of Fund Diversion

SEBI also alleged that some funds may have been diverted to personal accounts connected to Rajesh Mehta. The regulator further estimated that shareholders may have suffered a wealth erosion of around ₹12,726 crore.

The order highlighted concerns about the company’s accounting records and financial disclosures.

SEBI stated that investigators and forensic auditors faced difficulties in independently verifying several transactions because they were allegedly denied access to key records and systems.

Fresh Audit Ordered

As part of its interim directions, SEBI has barred Rajesh Mehta from buying, selling or dealing in securities of Rajesh Exports until further orders.

The regulator has also directed the company to fully cooperate with investigators and provide pending information within 30 days.

In addition, SEBI has ordered a fresh forensic audit to examine the company’s financial affairs in greater detail.

Shares Hit Lower Circuit

Following the release of the interim order, Rajesh Exports shares came under heavy selling pressure.

The stock hit its lower circuit limit on the BSE and closed at ₹104.65, down 4.99% from the previous trading session.

Investors are now awaiting the company’s detailed response as well as further developments in SEBI’s investigation, which could have a significant impact on the company and its shareholders.

(With IANS Inputs)