Bengaluru: Market regulator SEBI has issued a major order in June 2026, banning Rajesh Exports' CMD Rajesh Mehta from trading in the stock market. Common investors are shocked at how a company with a market value of just ₹3,000 crore executed a scam of ₹15 lakh crore? Actually, this is not a case of fleeing with money from banks, but a case of accounting fraud (paper manipulation).

How did this scheme work?

Between 2021 and 2025, the company showed an annual turnover (sales) ranging from ₹2.5 lakh crore to ₹3 lakh crore in its documents, which totals more than ₹15 lakh crore over five years. According to SEBI's investigation, 99.8 percent of these sales did not actually exist, but were exaggerated on paper through the following 3 methods:

Circular Trading: Fake sales were shown by rotating the same consignment or receipt of gold among its own dummy and fictitious companies.

Network of Shell Companies: Business was claimed through foreign subsidiaries based in Singapore and Switzerland. When SEBI demanded data of their bank accounts, the company refused to provide it.

Fake Investment in African Mines: In 2023, an investment of ₹1,035 crore was claimed in Africa's gold mines, which left no trace in the accounts.

Crackdown on the Auditor as Well:

SEBI has also ordered the National Financial Reporting Authority (NFRA) to take strict action against the company's auditor 'BSD & Co', who blindly signed these fake figures for years. On the other hand, Rajesh Exports has termed all these allegations as baseless.