Revenue numbers correct, issue due to confusion: Rajesh Exports

Embattled gold jewellery retailer Rajesh Exports on Thursday defended itself, saying that the revenues it filed in its financial are “correct” and the Securities and Exchange Board of India’s (SEBI) interim order that it misrepresented revenue to the tune of Rs 15.15 lakh crore from 2020-21 to 2024-25 was due to “confusion and communication gap”. It added it was in the process of addressing issues raised by SEBI and is confident it will be able to clarify “by presenting all the required and relevant documents”.

“It may be noted that SEBI has not made any adverse observation with regard to the earnings of the Company, it has only observed suspicion with regard to Revenues which is primarily because of confusion with regard to the Revenues of Valcambi. There is no reason for any listed entity to inflate revenue and maintain the earnings, this will only reduce the margins of the Company, which would be adverse to the Company,” Rajesh Exports said in an exchange filing.

SEBI has, in an interim report dated June 3 2026, alleged a gigantic scam involving a high-flying company called Rajesh Exports which is in the gold refining and jewellery business. SEBI says that there has been a massive misrepresentation of revenues spanning a five year period…

— Jairam Ramesh (@Jairam_Ramesh) June 4, 2026

The response comes after SEBI, late Wednesday, issued an interim order that alleged Rajesh Exports had inflated its revenue and barred the company and its owner from the securities markets ⁠till an investigation is completed.

Earlier on Thursday, Moneycontrol had reported, quoting Rajesh Exports Chairman and Managing Director Rajesh Mehta, that SEBI is confusing consolidated revenue numbers with value addition figures. Shares of Rajesh Exports fell 5% on Thursday.

Among the largest exporters and manufacturers of gold products, Rajesh Exports, SEBI said, saw 97-99% of its consolidated revenue come from its overseas subsidiaries, particularly Valcambi SA, based in Switzerland. At the same time, the standalone revenue of Valcambi – a leading gold refiner – “constituted only a negligible fraction of the consolidated revenues reported by GGR and REL”.

Global Gold Refineries, or GGR, is another Swiss-based entity that is a Rajesh Exports group company.

The stockbroker angle

An unlikely company also caught up in the storm is Ahmedabad-based stock broker Affluence Shares and Stocks Private Limited, which is among the entities with whom Rajesh Exports’ transactions have come under SEBI’s scanner.

According to SEBI’s order, Rajesh Exports’ sale transactions worth Rs 11,487 crore from 2021-22 to 2023-24 with Affluence made up 66% of the former’s standalone sales. Meanwhile, purchase transactions of Rs 11,488 crore with Affluence over the same time period accounted for 67% of Rajesh Exports’ standalone purchases. However, GST records of Rajesh Exports for 2020-21 to 2023-24 did not reveal any purchase transaction between it and Affluence.

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At the same time, Affluence’s aggregate revenue during the period in question was just Rs 113.22 crore, while aggregate purchases of stock-in-trade was Rs 84.64 crore.

“I note that as per Form MGT-7 filings of Affluence, the source of revenue of Affluence was disclosed as financial advisory, brokerage and consultancy services. The disclosed scale and nature of operations of Affluence prima facie appear to be inconsistent with REL’s claim of having undertaken sale and purchase transactions aggregating to more than INR 11,400 crore each with Affluence during FY 2021-22 to FY 2023-24,” SEBI Whole-Time Member Kamlesh Varshney said in his order.

What SEBI did find was seven transactions between Rajesh Mehta and Affluence, with the regulator saying the former received a total of Rs 7.54 crore in his account from Rajesh Exports through multiple tranches. The regulator alleged that Mehta then made payments totalling Rs 7.45 crore to Affluence to trade in gold derivatives, putting company money to personal use without seeking the approval of other shareholders. These trades resulted in a net loss of Rs 3.50 crore, after which Mehta transferred back Rs 3.91 crore to Rajesh Exports.

Furthermore, when SEBI questioned Dhiren Shah, promoter of Affluence, regarding these transactions, he denied his company had any dealings with Rajesh Exports, but admitted to doing business with Mehta in his “personal capacity”.