New Delhi — India’s largest state-owned insurer, Life Insurance Corporation of India (LIC), is facing increased scrutiny after regulatory filings revealed it held a 10.8% stake in Rajesh Exports as of March 2026. The development comes after India’s market regulator, the Securities and Exchange Board of India, accused the company of allegedly inflating revenues by an astonishing ₹15.15 lakh crore ($158 billion) over multiple financial years.
The allegations have triggered widespread concern among investors because Rajesh Exports is one of the world’s largest gold refiners and processors, while LIC is considered one of India’s most trusted institutional investors. Foreign Portfolio Investors (FPIs) also held approximately 14.2% ownership in the company, highlighting the extent of institutional exposure.
SEBI’s Explosive Allegations
According to SEBI’s interim findings, Rajesh Exports allegedly misrepresented its financial statements between FY2021 and FY2025 by reporting revenues that could not be adequately verified. The regulator claims the company overstated consolidated revenues by approximately ₹15.15 lakh crore, making it one of the largest alleged accounting irregularities ever investigated in the Indian stock market.
SEBI further alleged that nearly 97%–99% of the company’s reported revenue originated from overseas subsidiaries, particularly Swiss-based Valcambi SA, but supporting financial records and disclosures did not match the reported figures. The regulator has questioned whether a significant portion of the reported sales actually occurred.
The investigation also highlighted concerns regarding:
- Alleged fictitious transactions involving third-party entities.
- Questionable investments in African gold mining assets.
- Potential diversion of company funds into personal trading accounts linked to the promoter.
- Failure to provide complete documentation sought by investigators.
Regulatory Action Taken
Following its preliminary findings, SEBI issued an interim order barring Rajesh Mehta, the company’s Chairman and Managing Director, from dealing in company securities until further notice. The regulator has also directed Rajesh Exports to cooperate fully with ongoing forensic investigations.
Rajesh Exports Rejects Allegations
Rajesh Exports has strongly denied SEBI’s accusations, stating that its financial disclosures were accurate and complied with applicable accounting standards. Chairman Rajesh Mehta argued that SEBI’s analysis relied heavily on standalone figures while allegedly overlooking consolidated financial statements that included the operations of Valcambi SA.
The company maintains that the revenue figures reflected genuine business activity generated through its international refining operations and has described the dispute as a matter of interpretation and communication with regulators.
Market Reaction
Investors reacted sharply to the news. Shares of Rajesh Exports fell around 5% on Friday and have experienced significant selling pressure since the allegations became public. The stock has already lost substantial value over the past several years, with reports indicating a decline of nearly 90% from earlier peak levels.
The controversy has also raised questions about institutional due diligence, particularly because LIC remained one of the company’s largest public shareholders despite the prolonged decline in share price.
Why the Case Matters
The Rajesh Exports investigation is being closely watched because of the massive scale of the alleged revenue inflation, the involvement of major institutional investors, and its potential implications for corporate governance standards in India. Market experts believe the outcome of SEBI’s investigation could become a landmark case for financial reporting oversight and investor protection.
Key Facts at a Glance
- LIC Stake: 10.8% (March 2026)
- FPI Holding: Approximately 14.2%
- Alleged Revenue Inflation: ₹15.15 lakh crore ($158 billion)
- Investigation Period: FY2021–FY2025
- Regulator: SEBI
- Company Response: Denies wrongdoing and defends financial reporting
- Market Impact: Shares declined following SEBI’s interim order.
Disclaimer: The allegations are based on SEBI’s interim findings and remain under investigation. Rajesh Exports has denied the allegations, and no final determination has yet been made.
