The Biggest Accounting Scandal in India's Gold Industry?

India's financial markets regulator SEBI (Securities and Exchange Board of India) has levelled serious charges against the country's largest gold refinery and jewellery manufacturing company, Rajesh Exports Ltd (REL). In an interim order dated 3 June 2026, the regulator alleges that the company systematically manipulated its consolidated revenue by nearly ₹15.15 lakh crore — equivalent to approximately $158 billion — over the period from financial year 2020–21 through 2024–25, according to SEBI's own documents.

If the allegations are confirmed, this would represent one of the largest accounting fraud cases in Indian stock market history.

99.80 percent of the reported subsidiary revenue is alleged to be fictitious, according to SEBI.
Indian Gold Firm Allegedly Inflated Revenue by $158 Billion - Bilde 1

Swiss Subsidiary at the Centre

The core of the allegations revolves around Valcambi SA, a Switzerland-based gold refinery owned by Rajesh Exports. Between 97 and 99 percent of the group's consolidated revenue was attributed to foreign subsidiaries — primarily Valcambi. The problem, according to SEBI's review, is that Valcambi's own audited financial statements show revenues far lower than those presented by Rajesh Exports in its consolidated reporting.

In addition, the regulator alleges that the company booked sales of ₹11,487 crore to a firm called Affluence Shares and Stocks between FY22 and FY24. Affluence has, according to SEBI, disputed that these transactions ever took place.

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Interim Ban and Forensic Audit

SEBI has implemented several immediate measures. Promoter and managing director Rajesh Mehta has been temporarily prohibited from trading in the company's securities until further notice. The regulator has also ordered a new, independent forensic audit of the company's accounts, and has directed Rajesh Exports to provide accurate and complete disclosures regarding financial transactions and related parties in accordance with Indian listing regulations (the LODR regulations).

The share price reacted sharply and negatively. Following the order, the stock was locked at the lower circuit limit for two consecutive trading days.

$158 bn
Estimated inflated revenue
₹12,726 crore
Estimated loss to shareholders

Rajesh Exports Denies the Allegations

The company itself rejects SEBI's conclusions. In its official response, Rajesh Exports claims that the discrepancies stem from a misunderstanding related to the distinction between revenue and EBITDA figures from its subsidiary Valcambi. The company has not yet publicly presented documentation to support this explanation.

It is important to note that SEBI's order is interim in nature. The allegations have not yet been tested in court, and the company has the right to contest them through a full hearing process.

SEBI Steps Up Its Fight Against Accounting Fraud

The case illustrates a broader trend in which SEBI is increasingly turning its attention to accounting manipulation at listed companies. In recent years, the regulator has enforced stricter requirements on auditors and board members, and between April 2020 and March 2025 ordered the disgorgement of unlawful gains totalling ₹949.43 crore across 76 investment-related fraud cases, according to SEBI's annual reporting.

SEBI chairman Tuhin Kanta Pandey has on several occasions argued that forensic accounting must be integrated as an ongoing governance tool within companies — not merely deployed as a crisis mechanism after the damage has already been done.

For international investors with exposure to Indian equity and commodity markets, the case underscores the importance of scrutinising the alignment between consolidated financial statements and subsidiary-level reporting — particularly where large proportions of revenue are attributed to foreign entities.