Sebi mistook Valcambi's Ebitda as revenue; all records submitted: REL
New Delhi, Jun 10, 2026
Gold jewellery maker and exporter Rajesh Exports Ltd, currently under the regulator Sebi's scanner, on Wednesday said that of the several thousand clarifications sought by the regulator over the past two-and-a-half years, only nine remain unresolved - with the alleged ₹15.15 trillion revenue inflation query being one of them.
"All the other eight questions are minor. Even this ninth question is absolutely minor. SEBI has found certain things suspicious and needs more documents," said Rajesh Mehta, founder and Chairman of the company, told PTI in an interview.
Sebi, in an interim order, held that Rajesh Exports inflated its consolidated revenues by ₹15.15 trillion over FY21FY25 by attributing outsized revenues to overseas subsidiaries - particularly Switzerland-based Valcambi SA - despite the subsidiary's audited standalone financials showing only a fraction of those figures.
The regulator flagged what it called a prima facie misrepresentation of the company's financial position, noting that nearly the entire reported revenue was attributed to overseas subsidiaries whose financials were not publicly available.
Mehta pushed back, contending the discrepancy stems from a misreading by the regulator.
"Sebi has taken the EBITDA of Valcambi and considered it as revenue. That is the entire confusion - the nucleus of the confusion," he said.
He acknowledged that Valcambi accounts for 9799 per cent of consolidated revenues but denied that its standalone revenue was as low as 0.50 per cent of that figure.
"That 0.50 per cent is its EBITDA, not its revenue," Mehta clarified, adding that audited financials of Global Gold Refinery (GGR) - certified by KPMG - had been submitted to Sebi to support the company's position. GGR is the holding company of Valcambi.
VALCAMBI'S SCALE OF OPERATIONS
Mehta sought to underscore the scale of Valcambi's operations to buttress his argument. The Swiss refiner processes approximately 900 tonnes of precious metals annually - of which 300 tonnes involve toll refining, while the remaining 600 tonnes represent outright purchase, processing, branding and sale to banks, central banks and bullion dealers globally.
"600 tonnes every year over five years amounts to roughly 3,000 tonnes - that is the ₹15,10,000 crore figure being called into question," Mehta said.
"Even the smallest customer of Valcambi would have purchased more than ₹6,000 crore from them over five years. ₹6,000 crore in gold business at today's prices is peanuts."
On GGR - in which Rajesh Exports holds a 5 per cent stake and REL Singapore holds 95 per cent - Mehta clarified that the entity is a holding company with no independent revenue.
"GGR only consolidates its subsidiaries' revenues. The exact revenue of Valcambi has been consolidated into GGR. It is the same thing - not higher," he said.
SUBSIDIARY DISCLOSURES
On SEBI's observation that standalone financials of material overseas subsidiaries had not been uploaded to the company's website, Mehta conceded the point but stopped short of committing to an immediate upload.
"If subsidiary-level data is required as per regulation, we have no hesitation in uploading it. But we are currently focused on answering pending Sebi queries," he said.
FUND TRANSFERS TO PROMOTER ACCOUNTS
On banking records showing ₹338.90 crore transferred from Rajesh Exports to promoter personal accounts between April 2020 and September 2025 - with ₹232.4 crore subsequently returned - Mehta maintained all transactions were legitimate and carried out for business purposes.
"There is no diversion of even a single rupee," he said, adding that complete details had been furnished to Sebi.
Asked why the transfers were not disclosed as related-party transactions, given that his declared remuneration stands at ₹1.2 lakh per annum, Mehta said the transfers were commercial in nature and did not constitute related-party dealings requiring disclosure.
"The account was used only for channelising and bringing the required product back," he said.
OTHER FLAGGED TRANSACTIONS
SEBI had also flagged ₹11,400 crore in reported sales and purchase transactions between Rajesh Exports and Affluence Shares and Stocks Limited for FY22FY24 - an entity that has reportedly denied having the company as a client. Mehta said full documentation had been provided to the regulator and described the explanation as "fully satisfactory".
On Sebi's concerns over a circular fund routing scheme involving ACC Energy Storage and promoter-controlled Elest Pvt Limited - including a ₹147 crore transfer returned the same day and a ₹262 crore investment without disclosed valuation - Mehta termed the transactions "completely commercial" and said the regulator's characterisation was "a non-required, out-of-place comment."
Separately, on a ₹565 crore transfer to Elest Pvt Ltd , Mehta said approximately ₹300 crore had since been returned and that the amounts were extended as loans on a need basis - with Elest also having lent to Rajesh Exports on occasion.
"It is not a transfer. Every justification of every rupee has been given to SEBI," he said.
[Press Trust of India]
