Rajesh Mehta, once celebrated as India's 'Gold King', is currently facing a massive legal and financial crisis that has sent shockwaves through the bullion industry and the stock market. The market regulator, Securities and Exchange Board of India (SEBI), has taken a stringent step by banning Rajesh Mehta and his company, Rajesh Exports, from participating in the securities market. This action comes on the heels of grave allegations involving the inflation of financial figures on an unprecedented scale. According to the SEBI order issued on the evening of June 3, the company is accused of inflating its revenue by a staggering 15 point 15 lakh crore between the financial years 2020-21 and 2024-25. This alleged manipulation is so significant that it reportedly accounts for approximately 99 point 80 percent of the total value reported by the company during this period.
Market Impact and Regulatory Action
The immediate fallout of SEBI's announcement was visible on the stock exchanges. On the morning of June 4, as soon as the market opened, shares of Rajesh Exports plummeted, hitting a 5 percent lower circuit. The stock price dropped to 103 rupees 92 paise, reflecting the deep concern among investors. SEBI's investigation has not only highlighted the alleged revenue inflation but also pointed out a lack of cooperation from the company during the probe. Consequently, the regulator has ordered a fresh forensic audit of the company's accounts to uncover the full extent of the financial irregularities. While Rajesh Mehta has dismissed these allegations, calling the SEBI move an interim order and stating that the claims are incorrect, the company is currently studying the order to prepare a formal response.
From a Small Garage to a Global Empire
The rise of Rajesh Mehta is a story that began in 1989 when he started a small-scale business with his brother, Prashant Mehta. Their journey began with a simple trading model where they purchased gold jewelry from Chennai and sold it in Rajkot, Gujarat. Recognizing the potential for growth, they soon transitioned from trading to manufacturing, while in the same year, they established a small manufacturing unit in a garage in Bengaluru. Through strategic business moves and a keen understanding of the gold market, the business expanded rapidly, while their products eventually reached prestigious international markets, including the United Kingdom, Dubai, Oman, Kuwait, the United States, and various parts of Europe. By March 2026, the company's revenue was recorded at 2516 crore rupees, marking its position as a dominant player in the industry.
The Acquisition of Valcambi and Global Dominance
A defining moment in the history of Rajesh Exports occurred in 2015 when the company acquired Valcambi SA, a world-renowned gold refining company based in Switzerland. This acquisition catapulted Rajesh Exports onto the global stage, making it one of the largest gold refining entities in the world, while today, the company operates across India, Switzerland, and Dubai, boasting a modern refining unit with an annual capacity to process 2400 tons of gold products. With a business footprint spanning more than 60 countries, Rajesh Exports became a symbol of Indian corporate success in the global bullion market. However, the current allegations by SEBI have cast a long shadow over this decades-old empire, leaving the future of the 'Gold King' and his massive enterprise in a state of uncertainty as the forensic audit and legal battles loom ahead.