'Sent 400 GB records to SEBI, regulator missed key files': Rajesh Exports chairman
Founder and Chairman Rajesh Mehta said the company had already shared between 300 GB and 400 GB of records with SEBI and would resubmit all requested documents within 15 days to help resolve the matter.
- Jun 7, 2026,
- Updated Jun 7, 2026 9:32 PM IST
Gold refiner and jewellery exporter Rajesh Exports has pushed back against market regulator SEBI's allegations of revenue inflation, claiming the watchdog's interim order stems from a fundamental accounting misunderstanding and an inability to locate the correct documents submitted by the company.
Speaking to PTI, Founder and Chairman Rajesh Mehta said the company had already shared between 300 GB and 400 GB of records with SEBI and would resubmit all requested documents within 15 days to help resolve the matter.
"We had given them 300-400 GB documents, running into lakhs (of pages). I think they have not been able to find the correct documents. The whole confusion has happened there," Mehta said.
SEBI's June 3 interim order alleged that Rajesh Exports inflated its revenues by ₹15.15 lakh crore during FY21-FY25. Mehta, however, contended that the regulator had mistakenly treated EBITDA, or gross profit, as revenue.
MUST READ | Rajesh Exports may be removed from PLI scheme after SEBI flags ₹15.15 lakh crore fraud
"They have taken the EBITDA and termed it as revenue. EBITDA means gross profit. They have taken the gross profit and termed it as revenue. Looking at the number (₹15.15 lakh crore), they have made a huge mistake," he added.
To explain the alleged error, Mehta cited the example of a jewellery transaction where a customer purchases gold worth ₹30,000. According to him, while the sale value represents revenue, the gross profit may be only ₹1,000 and the net profit ₹500.
"SEBI has not commented on the Rs 500 net profit - they accept that figure. But they are taking the ₹1,000 EBITDA and calling it the revenue," he told PTI.
DON'T MISS | Rajesh Exports news: How a shareholder complaint triggered Sebi's massive probe
Applying the same logic to Rajesh Exports' bullion business, Mehta said the company could buy gold for ₹100 and sell it for ₹101, earning Re 1 as gross profit. He alleged that SEBI had treated that ₹1 as revenue instead of the full sale value. "It is a clear matter of confusion," he said.
Mehta also pointed to the language used in the interim order, saying the regulator itself had not reached definitive conclusions. "They themselves have said, we assume, we suspect that this is their business. So, this has to be clarified. Basically, nothing as harsh as they have come out with it."
Questioning the logic behind inflating revenues, Mehta argued that such a move would provide little benefit to a company.
"No company will inflate their revenues. If anybody wants to inflate, they will inflate their bottom line. They will inflate their profit to get some benefits. If they have alleged or observed an inflation of top line, which is absolutely no use for anybody," he told PTI.
He also maintained that revenue reporting requirements are governed by law.
"If SEBI permits us, I will remove the whole top line. But how can I do that? Because the law wants me to show what is happening. I am showing that," Mehta said.
DO CHECKOUT | BT Explainer: What Sebi’s interim order against Rajesh Exports and its promoter reveals
Rejecting allegations that company funds were routed through personal accounts or promoter-linked entities without disclosure, Mehta said, "Not at all. Not a single penny has been rooted through anything, not a single paise has been taken by the promoter."
He asserted that both the company and its promoters were completely debt-free and had not pledged shares anywhere in the world over the past four decades.
The interim order also barred Mehta from dealing in the company's securities pending further proceedings. Dismissing concerns over the restriction, he said, "I never trade, and in my life, I have never traded. I am not bothered."
On the sharp fall in the company's stock following the SEBI action, Mehta described the decline as temporary and driven by market sentiment. He added that Rajesh Exports was open to a fresh forensic audit and any inspection of its books and offices.
IN CASE YOU MISSED | Who is Rajesh Mehta? All about Sebi action on Rajesh Exports and what has happened so far
Expressing confidence about the outcome of the proceedings, Mehta said, "There is no worst-case scenario because I am fully confident about the wisdom of SEBI. Once we show them the clarifications, everything will go. I am sure they are not blind people; they are intelligent people. They will pass the order in a correct manner."
Addressing shareholders impacted by the stock's decline, he added, "The company has done no wrong. The company's books are absolutely clear and clean. I am 100 per cent confident, if not today, within a very short period of time, the shares will go back to their original glory."
Gold refiner and jewellery exporter Rajesh Exports has pushed back against market regulator SEBI's allegations of revenue inflation, claiming the watchdog's interim order stems from a fundamental accounting misunderstanding and an inability to locate the correct documents submitted by the company.
Speaking to PTI, Founder and Chairman Rajesh Mehta said the company had already shared between 300 GB and 400 GB of records with SEBI and would resubmit all requested documents within 15 days to help resolve the matter.
"We had given them 300-400 GB documents, running into lakhs (of pages). I think they have not been able to find the correct documents. The whole confusion has happened there," Mehta said.
SEBI's June 3 interim order alleged that Rajesh Exports inflated its revenues by ₹15.15 lakh crore during FY21-FY25. Mehta, however, contended that the regulator had mistakenly treated EBITDA, or gross profit, as revenue.
MUST READ | Rajesh Exports may be removed from PLI scheme after SEBI flags ₹15.15 lakh crore fraud
"They have taken the EBITDA and termed it as revenue. EBITDA means gross profit. They have taken the gross profit and termed it as revenue. Looking at the number (₹15.15 lakh crore), they have made a huge mistake," he added.
To explain the alleged error, Mehta cited the example of a jewellery transaction where a customer purchases gold worth ₹30,000. According to him, while the sale value represents revenue, the gross profit may be only ₹1,000 and the net profit ₹500.
"SEBI has not commented on the Rs 500 net profit - they accept that figure. But they are taking the ₹1,000 EBITDA and calling it the revenue," he told PTI.
DON'T MISS | Rajesh Exports news: How a shareholder complaint triggered Sebi's massive probe
Applying the same logic to Rajesh Exports' bullion business, Mehta said the company could buy gold for ₹100 and sell it for ₹101, earning Re 1 as gross profit. He alleged that SEBI had treated that ₹1 as revenue instead of the full sale value. "It is a clear matter of confusion," he said.
Mehta also pointed to the language used in the interim order, saying the regulator itself had not reached definitive conclusions. "They themselves have said, we assume, we suspect that this is their business. So, this has to be clarified. Basically, nothing as harsh as they have come out with it."
Questioning the logic behind inflating revenues, Mehta argued that such a move would provide little benefit to a company.
"No company will inflate their revenues. If anybody wants to inflate, they will inflate their bottom line. They will inflate their profit to get some benefits. If they have alleged or observed an inflation of top line, which is absolutely no use for anybody," he told PTI.
He also maintained that revenue reporting requirements are governed by law.
"If SEBI permits us, I will remove the whole top line. But how can I do that? Because the law wants me to show what is happening. I am showing that," Mehta said.
DO CHECKOUT | BT Explainer: What Sebi’s interim order against Rajesh Exports and its promoter reveals
Rejecting allegations that company funds were routed through personal accounts or promoter-linked entities without disclosure, Mehta said, "Not at all. Not a single penny has been rooted through anything, not a single paise has been taken by the promoter."
He asserted that both the company and its promoters were completely debt-free and had not pledged shares anywhere in the world over the past four decades.
The interim order also barred Mehta from dealing in the company's securities pending further proceedings. Dismissing concerns over the restriction, he said, "I never trade, and in my life, I have never traded. I am not bothered."
On the sharp fall in the company's stock following the SEBI action, Mehta described the decline as temporary and driven by market sentiment. He added that Rajesh Exports was open to a fresh forensic audit and any inspection of its books and offices.
IN CASE YOU MISSED | Who is Rajesh Mehta? All about Sebi action on Rajesh Exports and what has happened so far
Expressing confidence about the outcome of the proceedings, Mehta said, "There is no worst-case scenario because I am fully confident about the wisdom of SEBI. Once we show them the clarifications, everything will go. I am sure they are not blind people; they are intelligent people. They will pass the order in a correct manner."
Addressing shareholders impacted by the stock's decline, he added, "The company has done no wrong. The company's books are absolutely clear and clean. I am 100 per cent confident, if not today, within a very short period of time, the shares will go back to their original glory."