Gold jewelry retailer Rajesh Exports has responded to allegations from the Securities and Exchange Board of India (SEBI) regarding revenue misrepresentation. The company asserts that the financial figures it submitted are accurate and attributes SEBI’s interim order, which claims that the firm overstated its revenue by ₹15.15 lakh crore from the fiscal years 2020-21 to 2024-25, to a “communication gap and confusion.” Rajesh Exports is currently working to resolve the issues identified by SEBI and is optimistic about clarifying the situation by providing all necessary documentation.
In its statement, Rajesh Exports highlighted that SEBI has not made any negative comments regarding the company’s earnings but has expressed suspicion about its revenue figures, mainly due to confusion related to the revenues generated by Valcambi, a subsidiary. The company emphasized that there is no incentive for any publicly listed firm to exaggerate its revenue, as doing so could harm profit margins.
SEBI’s allegations, detailed in an interim report dated June 3, 2026, suggest a significant fraud involving Rajesh Exports, a prominent player in the gold refining and jewelry sector. The regulatory body claims that there has been extensive misrepresentation of revenue over a five-year period.
This response follows SEBI’s interim order issued late Wednesday, which accused Rajesh Exports of inflating its revenue figures and subsequently barred the company and its owner from accessing the securities market until the investigation concludes. Earlier on Thursday, Rajesh Mehta, the Chairman and Managing Director of Rajesh Exports, expressed concerns that SEBI is confusing consolidated revenue with value addition metrics, leading to the misunderstanding.
Rajesh Exports, one of the largest manufacturers and exporters of gold items, reportedly derives 97-99% of its consolidated revenue from its foreign subsidiaries, notably Valcambi SA, a leading gold refiner based in Switzerland. However, Valcambi’s standalone revenue reportedly contributes only a small fraction to the total consolidated revenues reported by the company.
Additionally, the Ahmedabad-based stock brokerage Affluence Shares and Stocks Private Limited has also found itself under SEBI’s scrutiny due to its dealings with Rajesh Exports. According to SEBI’s findings, transactions between the two entities amounted to ₹11,487 crore from 2021-22 to 2023-24, representing 66% of Rajesh Exports’ standalone sales. Conversely, purchases worth ₹11,488 crore during the same period accounted for 67% of the company’s standalone purchases. However, GST records for Rajesh Exports during this timeframe do not indicate any purchases from Affluence.
During the same period, Affluence reported total revenue of only ₹113.22 crore and total purchases of stock-in-trade amounting to ₹84.64 crore. SEBI noted discrepancies in Affluence’s Form MGT-7 filings, which indicated that its revenue sources were related to financial advisory and brokerage services. This seemed inconsistent with Rajesh Exports’ claims of significant sale and purchase transactions with Affluence.
SEBI’s investigation revealed seven transactions involving Rajesh Mehta and Affluence, with Mehta allegedly receiving ₹7.54 crore from Rajesh Exports in various installments. It is alleged that he subsequently transferred ₹7.45 crore to Affluence for gold derivative trading, using company funds without the approval of other shareholders, resulting in a net loss of ₹3.50 crore. Following this, Mehta returned ₹3.91 crore to Rajesh Exports.
Moreover, when questioned by SEBI, Dhiren Shah, the promoter of Affluence, denied that his company had any transactions with Rajesh Exports but acknowledged conducting business with Mehta in a personal capacity.
