For decades, Rajesh Mehta cultivated the image of an entrepreneur who transformed a modest family jewellery business into one of the world’s largest gold processing and exporting companies.
The founder and chairman of Rajesh Exports Ltd now finds himself at the centre of one of the most serious regulatory actions faced by a major Indian listed company, with market regulator SEBI alleging a staggering accounting fraud involving revenues running into crores of rupees.
Here’s the story of Mehta’s rise and the charges that threaten to bring him down.
A ‘classic success story’
Born in Bengaluru and reportedly educated at the city’s National College, Mehta comes from a Jain business family. His rise has often been portrayed as the quintessential Indian business success story.
Along with his brother Prashanth Mehta, he joined the family’s retail business in 1988. Within two years, the brothers had established what they described as India’s first organised gold jewellery manufacturing facility.
In 1991, they set up a research and development centre for jewellery manufacturing and, by 1994, Rajesh Exports had emerged as India’s largest exporter and wholesaler of gold jewellery.
The company expanded aggressively over the following decades, projecting itself as a global powerhouse in the precious metals business.
The acquisition of Swiss refinery Valcambi in 2015 was widely seen as the crowning achievement of Mehta’s global ambitions, giving the company control over one of the world’s largest gold refining facilities.
The company, in its website, claims to process 35% of the world’s gold production and has repeatedly highlighted its position as India’s leading exporter of gold products.
Over the years, Mehta travelled extensively to build industry relationships and was often consulted by trade bodies and industry organisations on matters related to the gold and jewellery sector, according to the company’s website.
Yet reputation and past achievements now offer little protection from the intense regulatory scrutiny. What was once celebrated as a remarkable entrepreneurial journey is increasingly being examined through the lens of accountability and financial transparency.
What are the charges Rajesh Mehta is now facing?
The glitter surrounding Mehta’s gold empire has now been overshadowed by deeply troubling questions raised by the market regulator.
In an interim order Wednesday, SEBI alleged that Rajesh Exports overstated its revenues by approximately Rs 15.15 lakh crore during the period from FY2021 to FY2025.
The regulator said nearly 99.8% of certain revenues reported by subsidiaries may have been inflated. SEBI also alleged that between 97-99% of reported revenues could not be independently verified and were linked to transactions involving overseas entities.
Rajesh Exports has denied SEBI’s findings.
If these allegations are proven, they would represent one of the most extraordinary cases of alleged financial misreporting in India’s corporate history, said a fund manager.
The regulator has barred Mehta from buying, selling or dealing in the securities of Rajesh Exports pending further proceedings and has ordered a fresh forensic audit of the company’s books and transactions.
Investors reacted swiftly, with the stock falling 5% on Thursday following the regulatory action.
In a statement Thursday, the Rajesh Exports said: “The revenues stated by the company in its financials are correct. The core observation in the order is with regard to the mis-reporting of the revenues, this has emerged primarily due to confusion because SEBI has considered the EBIDTA of Valcambi instead of revenue hence it has stated that there is a difference of about 97% in the revenue.”
EBITDA, which refers to earnings before interest, taxes, depreciation and amortisation, is a measure of a company’s operating profitability.
Corporate governance issue
The developments have cast a harsh spotlight on Mehta’s stewardship of a company long celebrated for its scale but often questioned for its unusually thin profit margins despite reporting massive revenues. The company reported a turnover of Rs 9,188.8 crore and a net profit of Rs 32.09 crore in FY25-26
“The latest allegations raise uncomfortable questions about corporate governance, oversight and transparency within the organisation and the role of the auditors and the board’s Audit Committee,” said a leading stock broker.
The company has four non-executive independent directors on its board.
The controversy has also drawn attention to institutional shareholders. Promoters continue to hold 54.55% of the company, while Life Insurance Corporation of India (LIC) owns around 10.80%, having steadily ramped up its stake over the last 10 years. Some market participants have questioned whether large investors exercised adequate scrutiny over the company’s reported financial performance.
Company denies allegations
In a statement, the company said SEBI’s order is only an interim measure and no adverse conclusion has been reached.
It maintained that its reported revenues are accurate and attributed the issue to a “communication gap and confusion” between the company and the regulator. The company is cooperating with SEBI and will submit all relevant documents to clarify its position, it said.
For Rajesh Mehta, the stakes could hardly be higher. The businessman who built a gold empire now faces the challenge of defending its credibility. The outcome of the ongoing investigation may determine whether his legacy remains that of a pioneering entrepreneur or becomes overshadowed by one of the most contentious regulatory battles in recent corporate history.
The company says it is India’s leading exporter of gold products. Wikimedia Commons 
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