Did you know? Rajesh Exports was one of the awardees of Rs 18,100 cr PLI scheme in 2022

Rajesh Exports Limited (REL), a multinational gold retailer and refiner headquartered in Bengaluru, Karnataka, and its Promoter-CEO Rajesh Mehta has grabbed headlines since Wednesday evening for all the wrong reasons to become hottest topic during live action in stock market on Thursday. 

Revenue misrepresentation of Rs 15.15 lakh cr?

Noteworthy, in one of the biggest alleged cases of revenue misrepresentation ever examined by the regulator, SEBI found the total mismatch amounted to around Rs 15.15 lakh crore. 

As a result, the capital markets regulator Sebi on Wednesday, June 3, barred them from dealing in the company's securities, alleging large-scale misrepresentation of financial statements and diversion of funds.

Rajesh Exports: Production Linked Incentive (PLI) Scheme awardee in 2022

Interestingly, Rajesh Exports is the same firm which was selected for incentive under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage in 2022.

In 2022, a total of 4 companies were selected for incentive - Reliance New Energy Solar Limited; Ola Electric Mobility Private Limited; Hyundai Global Motors Company Limited and now famous for SEBI scanner - Rajesh Exports Limited. 

FULL LINK to PIB release of 2022: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1809037®=3&lang=2

A Press Information Bureau statement by Ministry of Heavy Industries has officially declared that 'these  companies will receive incentives under India's Rs 18,100 crore programme to boost local battery cell production.

Allotment was made for 50 GWh of battery capacity to 4 successful bidders for incentive under (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage.

 

 

The manufacturing facility was to be set up within a period of two years; incentive to be disbursed on sale of batteries manufactured in India with emphasis on greater domestic value addition, the official statement from Ministry of Heavy Industries said in a PIB release dated 24 MAR 2022.

As per Ministry of Heavy Industries "All the 10 bids were evaluated and 9 companies were found responsive and meeting the conditions of eligibility as per the requirements under the RFP. Accordingly, the Financial bids for the qualified bidders were opened on March 17, 2022 at 11.45 AM after announcement of the results of technical evaluation under transparent global tender process of RFP."

Rajesh Exports under SEBI lens: Rs 15.15 lakh cr? Misrepresentation in financial statements?

-The regulator directed the company to make true and fair disclosures of their financial statements, related party transactions and other disclosures under the Listing Obligations and Disclosure Requirements (LODR) regulations.

- In a 109-page interim order, Sebi said its investigation has revealed misrepresentation in financial statements as well as instances of routing and layering of funds through personal accounts and related entities without adequate disclosures or supporting documentation.

 

FULL LINK to SEBI 109 page report: https://www.sebi.gov.in/enforcement/orders/jun-2026/interim-order-in-the-matter-of-rajesh-exports-limited_101820.html

Rajesh Exports shares: Locked in lower circuit

- Shares of gems and jewellery firm Rajesh Exports Ltd dropped 5 per cent to hit the lower circuit limit on Thursday after capital markets regulator Sebi barred its promoter and CEO Rajesh Mehta from dealing in the company's securities, alleging large-scale misrepresentation of financial statements and diversion of funds.

- On Thursday, Rajesh Exports shares declined 4.99 per cent to Rs 104.65 -- the lower circuit limit -- on the BSE.

- At the NSE, the stock edged lower by 4.99 per cent to hit the lower circuit limit of Rs 103.92.

Meanwhile, Rajesh Exports has issued a clarification saying:-

1) The order is interim and there has been no any adverse conclusion on any aspect arrived by SEBI.

2) The revenues declared by the company are correct and there is no over stating of revenues.

3) There seems to be some type of communication gap and confusion between SEBI and the company.

4) The company is in the process of clarifying all aspects to SEBI by submitting all the required and relevant documents.

5) The company is confident that SEBI in its wisdom will clarify the situation and arrive at the correct conclusion based on the authenticated documents which are in the process of submission by the company.