Rajesh Mehta’s Rise From Small Jewellery Trader To Billionaire, SEBI Order Puts Rajesh Exports Under Spotlight

Mumbai: Rajesh Mehta, Chairman and Managing Director of Rajesh Exports, has come under regulatory scrutiny after the Securities and Exchange Board of India (SEBI) issued an interim order against him and the company.

The market regulator has alleged large-scale financial irregularities, fund diversion and serious corporate governance failures at the company.

SEBI's investigation is still ongoing, and the findings mentioned in the interim order are preliminary in nature.

From Small Business to Global Gold Giant

Born on June 20, 1964, in Bengaluru, Rajesh Mehta entered the jewellery business at a young age instead of pursuing higher education.

Along with his brother Prashant Mehta, he started a silver jewellery business in the early 1980s with a loan of just Rs 1,200 from their elder brother.

The business expanded rapidly and became a major wholesale jewellery operation across South India, Gujarat and Mumbai.

Building Rajesh Exports

A major turning point came in 1995 when Rajesh Exports launched its initial public offering (IPO) and raised around Rs 10 crore.

Over the years, the company expanded across the entire gold value chain, including refining, manufacturing, exporting and retailing.

The company's biggest international move came in 2015 when it acquired Swiss precious metals refinery Valcambi in a USD 400 million all-cash deal.

The acquisition strengthened Rajesh Exports' position in the global gold market and brought international recognition to the company.

According to Forbes, Mehta's net worth was estimated at around USD 1.57 billion in 2019.

What SEBI Has Alleged?

In its 109-page interim order, SEBI alleged that Rajesh Exports may have misrepresented nearly Rs 15.15 lakh crore in consolidated revenues between FY21 and FY25.

The regulator claimed that around 97-99 percent of the company's reported revenues during the period appeared inflated, raising concerns about the reliability of its financial statements.

SEBI also alleged routing and layering of funds through related entities and personal accounts without proper disclosures.

The regulator further stated that repeated requests for records, explanations and supporting documents did not receive satisfactory responses.

Restrictions and Market Impact

SEBI has restrained Rajesh Mehta from buying, selling or dealing in securities of Rajesh Exports until further orders.

The regulator said Mehta exercised significant control over the company's financial and operational decisions.

Following the order, shares of Rajesh Exports fell nearly 5%, while shares of Life Insurance Corporation of India (LIC), which owns a 10.80% stake in the company, also came under pressure.

Investors are now closely watching the next steps in SEBI's investigation and the company's response to the allegations.