Rajesh Exports Ltd, which the Securities and Exchange Board of India (SEBI) charged with misreporting financial information and misleading investors, denied the charges in an exchange filing released Thursday (June 4, 2026.)
“The Company emphatically states that it has done no wrong and all the reporting of the Company with regard to it’s financials has been correct,” it said adding that the interim order of SEBI released 3 June, was not based on “conclusive adverse findings.”
SEBI said that the “company’s overwhelming majority (approx. 97%-99%) of consolidated revenues were attributed to overseas subsidiaries and step-down subsidiaries,” and that such information was not “independently verifiable.” REL allegedly was consistent with the revenue inflation and liability deflation in the last five years with the consolidated revenue in fiscal 2024-25 coming out to be ₹4.11 lakh crore and the total of ₹15.15 lakh crore cumulative of the five years, according to SEBI’s interim order.
The Whole Time Member Kamlesh Chandra Varshney, who passed the interim order, directed REL to co-operate with the investigating authority and a newly appointed forensic auditor. Further he banned REL’s promoter Rajesh Mehta from trading in its stocks, based on primary evidence.
Responding to this, REL said:“The core observation in the order is with regard to the mis-reporting of the revenues, this has emerged primarily due to confusion because SEBI has considered the EBIDTA of Valcambi (the subsidiary) instead of Revenue hence it has stated that the there is difference of about 97% in the revenue. The consolidated Revenue as stated by the Company is Correct,” in its exchange filing.
The gold and diamond jewellery exporters’ stock crashed up to 5% in the trading session after the release of the order.
Published – June 05, 2026 02:53 am IST
