SEBI Chairman on Rajesh Exports case: quasi-judicial, comply or challenge
Synopsis
SEBI Chairman Tuhin Kanta Pandey refused to discuss the Rajesh Exports case publicly, citing quasi-judicial protocol — but the numbers behind the case are hard to ignore. The regulator has alleged that nearly 97–99% of the company's reported revenue was inflated, called the irregularities 'egregious and unheard of,' and barred promoter Rajesh Mehta from trading. Shares have hit lower circuit for three straight sessions.
Key Takeaways
SEBI Chairman Tuhin Kanta Pandey on 8 June declined to comment on the Rajesh Exports case, citing quasi-judicial process.
SEBI's interim order barred promoter and CEO Rajesh Mehta from dealing in the company's securities until further orders.
The regulator alleged that nearly 97–99% of Rajesh Exports' revenue appeared to have been inflated — described as 'egregious and unheard of.' Statutory auditors were flagged for alleged non-cooperation; audit working papers were reportedly not provided despite assurances.
Rajesh Exports denied all allegations, saying revenues were correctly reported and citing a possible communication gap with the regulator.
The stock hit its lower circuit for a third consecutive session , touching an intraday low of ₹94.50 on the BSE .
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Monday, 8 June declined to comment publicly on the regulator's enforcement action against Rajesh Exports, stating that the matter is part of a quasi-judicial process and must be resolved through prescribed legal channels. Pandey's remarks came on the sidelines of the India Investor Conference in Mumbai.
What the SEBI Chairman Said
'As a matter of principle, we do not comment on individual cases in the media. This is, in fact, a quasi-judicial process in which orders are issued, and they must be complied with or challenged through the procedures provided by law. Therefore, I will not be making any comments on the matter,' Pandey told reporters.
Pandey also noted that SEBI's tokenisation pilot programme would require another six to nine months to progress, while separately addressing upcoming regulations for bond brokers and tokenisation initiatives.
Background: SEBI's Action Against Rajesh Exports
The chairman's comments follow SEBI's interim order last week barring Rajesh Exports promoter and Chief Executive Officer Rajesh Mehta from buying, selling, or dealing in the company's securities — directly or indirectly — until further orders. The regulator alleged financial irregularities, diversion of funds, and inadequate disclosures related to fund flows and related-party transactions.
According to SEBI's interim findings, investigations prima facie revealed instances of routing and layering of funds through personal accounts and related entities without adequate disclosures or supporting documentation. The regulator said repeated opportunities were provided to the company to furnish accurate financial statements and explain the end-use and beneficiaries of fund flows, but responses remained unsatisfactory.
Scale of Alleged Irregularities
SEBI's interim order described the alleged irregularities as 'egregious and unheard of,' noting that nearly 97–99 per cent of the company's revenue appeared to have been inflated. The regulator further flagged alleged non-cooperation by statutory auditors, stating that audit working papers were not provided despite assurances during depositions. According to SEBI, such sustained non-cooperation indicated possible attempts to suppress material information and obstruct regulatory investigations.
Rajesh Exports Denies Allegations
Rajesh Exports has denied all allegations and maintained that no financial irregularities occurred. In a stock exchange filing, the company stated that revenues were correctly reported and suggested that a communication gap may have existed between the company and the regulator. The company expressed confidence that authenticated documents would support its position.
Market Impact
Rajesh Exports shares remained under sustained pressure, hitting the lower circuit for the third consecutive trading session on Monday. The stock touched an intraday low of ₹94.50 on the Bombay Stock Exchange (BSE), marking a decline of approximately 5 per cent. The stock had also hit lower circuit limits on the two preceding sessions following the issuance of the interim order.
With the matter now firmly in quasi-judicial territory, the next development will hinge on whether Rajesh Exports mounts a formal legal challenge or moves to comply with SEBI's interim directives.
Point of View
But it does little to address the scale of what SEBI itself has alleged. A regulator that describes revenue inflation of 97–99% as 'egregious and unheard of' in its own order cannot then retreat entirely behind quasi-judicial decorum when the public asks questions. The Rajesh Exports case also surfaces a recurring structural weakness: statutory auditors allegedly withheld working papers, yet the audit oversight framework has not visibly tightened. If SEBI's prima facie findings hold, this will rank among the most serious accounting fraud cases in recent Indian market history — and the market's three-day lower-circuit verdict suggests investors are not waiting for the legal process to conclude.
NationPress
24 Jul 2026
Frequently Asked Questions
Why did the SEBI Chairman refuse to comment on the Rajesh Exports case?
SEBI Chairman Tuhin Kanta Pandey said the matter is part of a quasi-judicial process in which orders are issued and must either be complied with or challenged through legal procedures. He stated it is SEBI's standing principle not to comment on individual cases in the media.
What has SEBI alleged against Rajesh Exports?
SEBI's interim order alleged large-scale misrepresentation of financial statements, routing and layering of funds through personal accounts and related entities, and inadequate disclosures. The regulator found that nearly 97–99% of the company's reported revenue appeared to have been inflated, calling the irregularities 'egregious and unheard of.'
What action has SEBI taken against Rajesh Mehta?
SEBI barred Rajesh Mehta, the promoter and CEO of Rajesh Exports, from buying, selling, or dealing in the company's securities — directly or indirectly — until further orders. The order cited his substantial control over the company's financial operations.
How has Rajesh Exports responded to the SEBI order?
Rajesh Exports denied all allegations, stating in a stock exchange filing that revenues were correctly reported. The company suggested a communication gap may have existed between itself and the regulator, and expressed confidence that authenticated documents would support its position.
How have Rajesh Exports shares reacted to the SEBI order?
Rajesh Exports shares hit the lower circuit for three consecutive trading sessions following the SEBI order. On Monday, the stock touched an intraday low of ₹94.50 on the BSE, a decline of approximately 5 per cent.
