Indian jewellery giant Rajesh Exports Limited is facing intense regulatory scrutiny after the Securities and Exchange Board of India (SEBI) raised concerns over alleged financial misstatements, opaque overseas transactions, and claims related to investments in African gold mining assets and electric vehicle ventures.
In an interim order, SEBI alleged that the company misrepresented approximately ₹15.15 lakh crore (about US$158 billion) in revenues linked to overseas subsidiaries between FY21 and FY25. The regulator has temporarily barred Chairman Rajesh Mehta from trading in the company’s securities while the investigation continues.
The case has attracted widespread attention because Rajesh Exports has spent the past several years positioning itself not merely as a jewellery manufacturer, but as a diversified group with interests spanning precious metals refining, electric vehicle technology, energy storage, and upstream mining assets.
One of SEBI’s key concerns relates to the company’s previously announced investment of approximately ₹1,035 crore in gold mining assets in Africa. According to the regulator, investigators were unable to obtain sufficient documentation to independently verify the existence, valuation, ownership structure, or financial treatment of the reported investments. SEBI noted that the claimed mining assets were not clearly reflected in the standalone financial statements of either Rajesh Exports or its subsidiaries.
The regulator also questioned disclosures surrounding the company’s overseas subsidiary structure.
According to SEBI, between 97% and 99% of Rajesh Exports’ reported revenues originated from foreign subsidiaries, primarily through Swiss gold refining operations linked to Valcambi SA, one of the world’s largest precious metals refiners. However, investigators alleged they were unable to reconcile reported group revenues with financial information available for the operating entities.
SEBI further alleged instances of incomplete disclosures, inconsistent submissions, difficulties in verifying transactions, and inadequate supporting documentation during the course of its investigation. The regulator described the matter as involving a broader pattern of financial misrepresentation and regulatory non-compliance that may have presented an inflated picture of the company’s operational scale and financial health.
Rajesh Exports has strongly disputed the allegations.
The company maintains that its financial disclosures were accurate and argues that the apparent discrepancies stem from differences between standalone and consolidated accounting treatment. Chairman Rajesh Mehta stated that SEBI’s analysis did not adequately account for the group’s consolidated operations and the scale of activities conducted through overseas entities.
The controversy arrives at a critical time for the company.
In recent years, Rajesh Exports has sought to expand beyond traditional gold refining and jewellery manufacturing through investments in battery technologies, electric mobility, and resource assets. The strategy reflected a broader trend among commodity-linked companies seeking exposure to high-growth sectors tied to electrification and energy transition markets.
However, the latest regulatory action has shifted investor attention away from future growth plans and toward questions surrounding governance, disclosures, and financial transparency.
Market participants will now closely watch the outcome of SEBI’s investigation, which could have significant implications not only for Rajesh Exports but also for broader investor confidence in cross-border corporate structures, overseas asset disclosures, and diversification strategies among Indian listed companies.