BENGALURU: Rajesh Exports chairman Rajesh Mehta, who is under Sebi’s scanner over allegations that the company inflated its revenues by Rs 15.2 lakh crore between FY21 and FY25, said he does not intend to challenge the regulator’s interim order and is fully cooperating with the investigation.At 4.2%, US inflation logs biggest gain in 3 yearsAt 4.2%, US inflation logs biggest gain in 3 yearsThe consumer price index increased 4.2% in the 12 months through May, boosted by surging prices for energy products amid the West Asia conflict, and giving more ammunition for the Federal Reserve to keep interest rates unchanged into 2027. This was the largest gain since April 2023, the Bureau of Labour Statistics said.Excluding the volatile food and energy components, the CPI increased 2.9% year-on-year in May after rising 2.8% in April. The rise in inflation was in line with economists’ expectations.Wall Street’s major indexes extended declines on Wednesday, as technology stocks remained under pressure and renewed tensions between the United States and Iran overshadowed a tame inflation reading. The S&P 500 tech index was down 1.6% . Dow Jones fell 599 points or 1.2%, the S&P 500 lost 69 points, or 0.9%, and the Nasdaq Composite lost 324 points, or 1.3%.Spot gold was down 3.3% at $4,124 per ounce, its lowest level since March 23.“We do not see this as a matter that requires contesting. We are cooperating fully with Sebi and are submitting all documents and information requested by the regulator. To date, we have already responded to some 2-3 queries,” Mehta told TOI.“Importantly, there has been no adverse regulatory action against the company. The company has not been barred from conducting business, nor has any penalty been imposed. We remain committed to complying with all regulatory requirements and will continue to engage constructively with Sebi throughout the process,” he said.TOI had earlier reported that Sebi, in its 109-page interim order, alleged that Rajesh Exports inflated its revenues between FY21 and FY25. According to the regulator, the company reported consolidated aggregate revenue of Rs 15.2 lakh crore during the five-year period while misrepresenting 99.8% of its total consolidated revenue. Mehta said the company and its executives are fully cooperating with the investigation and forensic auditors appointed in the matter. He added that Rajesh Exports has already submitted between 40,000 and 50,000 documents and more than 300 GB of data to Sebi as part of the probe.
“Sebi has not made any allegations. We are responding to their observations. Once we have submitted all the documents, the matter will be clarified shortly,” he said. In a recent stock exchange filing, Rajesh Exports reiterated that Sebi’s order is only an interim order that raises suspicions on certain aspects of the company’s operations and does not contain any conclusive adverse findings.The company also maintained that neither Rajesh Exports nor any of its personnel were involved in any wrongdoing or misrepresentation.Responding to Sebi’s observations on its reported revenues, the company said the regulator had misunderstood the nature of its business. It argued that a substantial portion of the consolidated revenue was generated by its Swiss subsidiary, Valcambi, which refines and sells gold bullion to major banks, central banks and large bullion market participants globally.For FY26, the group’s consolidated revenue stood at Rs 7.8 lakh crore, while standalone revenue at Rajesh Exports was about Rs 9,200 crore. Mehta said the standalone revenue reflects the company’s India operations, while bulk of the consolidated revenue is contributed by Valcambi.