Facing scrutiny over alleged fund diversion and governance lapses flagged by SEBI, Rajesh Exports Executive Chairman Rajesh Mehta has rejected all allegations, maintaining that neither company nor shareholder funds were diverted. He also defended the company’s overseas operations, receivables position, and revenue reporting in a conversation with businessline.
Edited Excerpts:
SEBI has alleged that company funds were routed through promoter-linked accounts and used for derivative trading.
I categorically deny that allegation. Not a single rupee of company funds or shareholder funds has been diverted anywhere. There has never been any instance of diversion of funds for personal use. What has been stated in the interim order is based on a misunderstanding, and we will clarify every point before the regulator.
SEBI has also said complete records were not furnished during the investigation, particularly relating to overseas subsidiaries.
Absolutely not. We submitted over 400 GB of data and more than 60,000 pages of documents. Everything sought was provided. If there had been any shortfall, SEBI could have written to us. In fact, we have not received any communication from the regulator over the last three months seeking additional information. We have fully cooperated and will continue to cooperate.
Have all transactions carried out been approved by the board specially related party transactions?
Everything is above board. Whatever pointwise they have written we are going to take up and respond.
The regulator has questioned investments of over ₹1,000 crore in African gold-mining assets. What is your explanation?
These investments were made by step-down foreign subsidiaries and not directly by the parent company. They were overseas transactions undertaken by those entities. All relevant records and supporting documents relating to those investments have already been submitted. There is complete transparency regarding these transactions.
What would you like to tell investors, including institutions such as LIC and foreign investors, who may be concerned by the interim order?
The promoters have not sold a single share of the company since inception (IPO). With promoters holding about 55 per cent. Not a single share has been sold by any of the promoters in this company since inception. We do not have any idea of selling the shares.
Has any funds of the company been diverted for personal use?
Not a single rupee! Company funds have not been used for promoters. That is ruled out. I am very much in Bengaluru and we are fully cooperating with authorities to bring out truth.
Eyebrows have also been raised about management getting paid paltry sums in remuneration including the CFO a mere ₹4 lakh per annum?
I see no harm in it. There should have been concern if we overpaid ourselves, not the other way around. All I want to say is that an interim order is being blow way out of proportion. This (episode) has happened due to a communication gap.
Published on June 4, 2026
