The Ministry of Corporate Affairs has ordered India’s premier white-collar crime agency, the Serious Fraud Investigation Office (SFIO), to launch a probe into gold refiner and jewelry manufacturer Rajesh Exports. The escalation follows serious allegations of accounting fraud and financial irregularities flagged by market regulator SEBI.
The Core Allegations: Inflated Revenues
The central government initiated the SFIO probe under Section 212 of the Companies Act, 2013, which empowers it to step in when complex corporate fraud is suspected in the public interest.
The investigation centers around an interim order issued by SEBI on June 3, which accused the Bengaluru-headquartered firm of artificially inflating its consolidated financial books over a five-year period. SEBI alleges that Rajesh Exports mapped massive revenue figures to its overseas subsidiaries—such as Switzerland-based Valcambi SA—even though those subsidiaries’ independent financial audits showed only a small fraction of the claimed amounts.
Following these findings, SEBI has barred the company’s promoter from buying, selling, or trading any company securities.
Escalating Troubles: Missing Records & ED Raids
The SFIO investigation adds to a growing wave of federal heat. The Enforcement Directorate (ED) recently executed search operations across nine company properties under the Foreign Exchange Management Act (FEMA).
According to official agency statements, Rajesh Exports’ operations showed a severe departure from standard commercial practices, notably failing to provide basic cross-border paperwork:
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Missing Trade Records: The company could not provide valid documentation for its standard imports, exports, and overseas investments.
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The “Ghost” Mines: Investigators specifically noted that documentation to back up a claimed ₹1,035 crore investment into African mines could neither be found on-site nor produced by management.
The Corporate Response
| Agency / Regulator | Key Action Taken | Rajesh Exports Stance |
| SEBI | Issued interim order; barred promoters from stock trading over alleged multi-year revenue inflation. | Denies Wrongdoing: Company representatives claim there is no fraud and that the discrepancy is simply a “question of interpreting the numbers.” |
| Enforcement Directorate (ED) | Conducted raids across 9 premises over missing records for overseas trade and a ₹1,035 crore African mine venture. | Unresolved: Official documentation for the foreign assets and trade receivables has yet to be provided to federal authorities. |
| SFIO | Ordered by the corporate ministry to launch a full-scale corporate fraud investigation. | — |
