00:00If Sebi's allegations hold true, this could be one of India's biggest financial irregularities ever.
00:05Rupees 15 lakh crore. Here's the number of zeros we are talking about.
00:09The allegation of financial misrepresentation is against Rajesh Exports, founded by Rajesh Mehta and his brother Prashant.
00:14And if you go by the lore, it could make for one fine TV show.
00:17Rajesh and his brother Prashant borrowed Rupees 1200 from their eldest brother to start a silver jewelry firm in the
00:221980s.
00:23In 1991, they set up a research and development center for jewelry manufacturing.
00:26And by 1994, Rajesh Exports had emerged as India's largest exporter and wholesaler of gold jewelry.
00:33The company claims it processes 30% of the world's gold.
00:35And in 2015, they bought Valcambi SA, a Swiss gold refinery for $400 million.
00:41For over a decade, investors trusted Rajesh Exports, including LIC, which currently owns a 10% stake in the company.
00:47Then on March 11, 2024, Sebi received an email alleging malpractice.
00:51The Sebi got to work.
00:52On June 3, 2026, Sebi dropped a 109-page interim order.
00:56It alleged that Rajesh Exports misrepresented its revenues by approximately 15 lakh crore, between FY21 and FY25.
01:04That figure represents 99.8% of everything the company reported earning during those 5 years.
01:09According to Sebi, almost all of Rajesh Exports' revenue, 97-99% was coming from one place, Valcambi, the Swiss
01:16refinery.
01:17But when audited, Valcambi's accounts showed revenues of a few hundred crore rupees a year.
01:22But Rajesh Exports, back in India, was reporting several lakh crore.
01:25At its peak in 2023, the stock was priced at over 900 rupees.
01:30On June 5, 2026, this is how much it costs.
01:33According to reports, many investors who had invested in the stock are looking to sell their stakes, but are not
01:38finding any buyers.
01:40Responding to the allegations, the company said,
01:42All the reporting of the company with regard to its financials has been correct.
01:46The company alleged that Sebi compared the wrong numbers.
01:48According to the company, Sebi looked at Valcambi's EBITDA, a measure of operating profit instead of its revenue,
01:55making the gap appear much larger than it actually was.
01:57It will be interesting to see how this story turns out.
02:00Share your thoughts below.
02:02Loan.
02:03Loan.
Comments