The SEBI made the observation in an order restraining Rajesh Exports promoter and Executive Chairman Rajesh Mehta from buying, selling or dealing in the securities of the company until further orders.
In an interim order passed on June 3, SEBI Whole Time Member Kamlesh Chandra Varshney noted that a large part of Rajesh Exports' revenues were attributed to its subsidiaries overseas.
The SEBI noted that this misrepresented amount represented about 99.80 percent of the revenue attributed by Rajesh Exports to its subsidiaries during a five year period.
"REL has prima facie misrepresented approximately INR 15,15,385 crore i.e.
“The aberrations prima facie noted in the matter - where approx.
The SEBI made the observation in an order restraining Rajesh Exports promoter and Executive Chairman Rajesh Mehta from buying, selling or dealing in the securities of the company until further orders.
In an interim order passed on June 3, SEBI Whole Time Member Kamlesh Chandra Varshney noted that a large part of Rajesh Exports' revenues were attributed to its subsidiaries overseas.
However, on examination of available records, the SEBI found that a Switzerland-based subsidiary, portrayed as driving the bulk of REL's operations, produced revenues that were much less than projected.
The mismatch alleged by the SEBI has been pegged at ₹15.15 lakh crore.
The SEBI noted that this misrepresented amount represented about 99.80 percent of the revenue attributed by Rajesh Exports to its subsidiaries during a five year period.
"REL has prima facie misrepresented approximately INR 15,15,385 crore i.e. representing 99.80% of its revenues which are attributed to subsidiaries during the period FY 2020-21 to FY 2024-25. The aforesaid conduct appears to have prima facie enabled REL to portray an inflated and misleading picture of its operational scale, consolidated financial position and financial health before investors and the securities market," the order said.
SEBI termed these discrepancies egregious.
“The aberrations prima facie noted in the matter - where approx. 97% to 99% of the revenue of the Company is inflated - are egregious and unheard of."
