Rajesh Exports shares jump 5% after 30% crash in 7 days. How the alleged Rs 15.15 lakh cr fraud saga unfolded

The shares of Rajesh Exports took a breather after an incessant fall, rising 5% to hit the upper circuit on Monday after Sebi’s interim order over alleged Rs 15.15 lakh crore revenue inflation sparked a 30% crash in the stock over seven consecutive sessions.The shares of the company jumped to Rs 80.23 apiece on the NSE amid the overall market uptrend.

The stock has overall tumbled 55% in 2026 so far and 87% in three years, with its market capitalisation coming down to Rs 2,369 crore.Sebi’s interim order against Rajesh ExportsSebi, in its interim order released earlier this month, claimed that its investigation and forensic review had uncovered prima facie evidence suggesting that about 97-99% of the company's revenue may have been inflated, describing the findings as "egregious and unheard of."The market regulator restrained promoter Rajesh Mehta from buying, selling or dealing in securities of Rajesh Exports until further orders, and also directed the company to cooperate fully with investigators.

This came after a shareholder complaint received in March 2024.Also read: Canara Bank recovers over half of ₹500 crore Rajesh Exports exposure, CEO outlines growth strategyRajesh Exports blames ‘communication gap and confusion’Rajesh Exports, in an exchange filing, clarified that the order is interim and no adverse conclusion has been made by Sebi yet.

It said that the revenues declared by the company are correct, and no overstating of earnings has been done.

“There seems to be some type of communication gap and confusion between Sebi and the company,” Rajesh Exports said.The company further said that it 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.“The core observation in the order is concerning the misreporting of the revenues.

This has emerged primarily due to confusion because SEBI has considered the Ebitda of Valcambi instead of Revenue; hence, it has stated that there is a difference of about 97% in the revenue.

The consolidated Revenue as stated by the Company is correct,” Rajesh Exports said in another exchange filing.Also read: Rajesh Exports is not alone; there are many hiding behind one word called …Promoter Rajesh Mehta denies allegationsIn an interview with PTI, the company’s founder and chairman, Rajesh Mehta, denied allegations that Rajesh Exports had impeded the audit process and said the company had been forthcoming with investigators throughout."I would never agree to the fact that certain relevant documents have not been submitted by us.

We have submitted everything we were asked for.

Sebi has not found anything; maybe we have missed out on something.

All that will be reconciled now," Mehta said.On whether the company plans to legally contest Sebi's directions, Mehta said there was no reason to do so.

"Sebi has all the authority and right to keep asking us for documents for any number of years.

There is no fine, no penalty, no coercive action in this order.

Why should we challenge it?" he said.Also read: Why is the stock market rising today?(With inputs from agencies)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

These do not represent the views of The Economic Times.) ...