$158 Billion Revenue? India’s Gold Giant Cannot Account for 99.8% of Earnings, SEBI Says

India’s market regulator alleges that Rajesh Exports, the gold major behind Swiss refiner Valcambi, misrepresented about $158 billion in revenue over five years. SEBI says that figure equals 99.8% of the revenue the company credited to its subsidiaries.

The Securities and Exchange Board of India (SEBI) issued the interim order on June 3. It barred promoter and chairman Rajesh Mehta from the securities market and ordered a fresh forensic audit.

Why the Numbers Stopped Adding Up

Rajesh Exports built a Fortune Global 500 profile on consolidated revenue. Between 97% and 99% of that total came from overseas subsidiaries, chiefly Valcambi. SEBI says auditors could not match those figures against subsidiary records.

“REL has prima facie misrepresented approximately INR 15,15,385 crore [$158 billion] i.e. representing 99.80% of its revenues which are attributed to subsidiaries during the period FY 2020-21 to FY 2024-25,” SEBI Whole-Time Member Kamlesh Chandra Varshney wrote in the interim order.

The probe traces back to a shareholder complaint in March 2024 about large trade receivables. SEBI says the company failed to supply ownership records, reconciliation statements, or transaction-level evidence despite repeated requests.

The regulator alleges the company booked the full gross value of refined gold as its own revenue. Much of that metal belonged to customers and was only processed for a fee.

Valcambi’s audited accounts reportedly showed less than 0.5% of the group’s claimed total.

The case lands while the tokenized gold market expands and investors revisit the gold safe haven narrative. It raises fresh questions about how physical gold flows are valued and disclosed.

“India may have just witnessed one of its biggest accounting frauds ever,” remarked one analyst.

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Fabricated Trades and Diverted Funds

SEBI flagged roughly ₹11,487 crore, about $1.3 billion, in transactions with broker Affluence Shares and Stocks. The broker told the regulator that Rajesh Exports was never a client and that no trades occurred.

The order also alleges that company funds moved to Mehta’s personal account for derivative trading without board approval. SEBI rejected the company’s refusal to share subsidiary records, which cited Swiss privacy law.

These claims place auditors under fresh scrutiny, echoing earlier debates over oversight in some of the biggest financial frauds.

The case also reflects wider concerns around real-world asset tokenization and verifiable backing.

The Company Pushes Back

Rajesh Exports denies any wrongdoing. In its exchange filing, it called the order interim with no final conclusion and said its revenue reporting follows accounting standards. The company attributes the gap to a comparison of gross gold value against processing income.

“The revenues declared by the company are correct and there is no over stating of revenues. There seems to be some type of communication gap and confusion between SEBI and the company…The company rejects all adverse media reports appearing with regard to the interim order of SEBI. The company will be shortly issuing a media clarification which would clarify and settle the unnecessary speculation in the media,” Rajesh Exports Limited countered.

Notwithstanding, markets reacted quickly. The stock hit its lower circuit near ₹104 ($1.09) on June 4. Life Insurance Corporation holds about 10.8% of the company, and roughly 194,000 retail shareholders are exposed.

SEBI’s directions are interim and ex-parte, so no final guilt has been established. The company has 30 days to respond in detail, and a fresh forensic audit will follow.

How regulators reconcile the gross gold value against the processing fees may decide whether the misrepresentation label holds.

Primary sources include the SEBI interim order and the company filing.

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