Rajesh Exports may be removed from PLI scheme after SEBI flags ₹15.15 lakh crore fraud

The Ministry of Heavy Industries (MHI) is likely to take a call in the coming days on removing Rajesh Exports from the list of beneficiaries under the production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage, following market regulator SEBI’s interim order alleging large-scale financial irregularities at the Bengaluru-based company. 

Sources told PTI that there is a “strong view” within the ministry that Rajesh Exportshttps://www.businesstoday.in/markets/stocks/story/rajesh-exports-ownership-snapshot-lic-holds-10-8-check-fii-stake-and-more-534833-2026-06-04 should be excluded from the scheme. The matter is expected to be placed before Heavy Industries Minister H D Kumaraswamy, who recently returned from an official visit to Kyrgyzstan. 

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The development comes after SEBI, in a 109-page ex parte interim order issued on June 3, alleged that Rajesh Exports had overstated revenues by ₹15.15 lakh crore between FY21 and FY25. According to the regulator, nearly 99.8 per cent of the revenues reported by the company’s subsidiaries during the period were materially misrepresented. 

SEBI also flagged alleged fund diversion, opaque related-party transactions and disclosure lapses involving Elest Pvt Ltd and ACC Energy Storage Pvt Ltd, two entities linked to Rajesh Exports’ lithium-ion cell business. 

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Pending further proceedings, the regulator has barred promoter and Chairman Rajesh Mehta from buying, selling or dealing in the company’s securities. It has also ordered a fresh forensic audit of the company’s books. 

The Ministry of Heavy Industries, which administers the ACC battery storage PLI scheme, is currently reviewing the SEBI order before deciding its next course of action. 

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Chairman Rajesh Mehta and Rajesh Exports have denied SEBI’s allegations and said they are cooperating with the ongoing investigation.

After SEBI’s interim orders on allegations of misrepresentation its almost entire revenue over a five-years and diversion of funds without approvals and disclosures, Rajesh Exports has shared a clarification with the exchanges post their requisite for the same. The clarification came in five pointers, where the company refuted all the alleged remarks flagged by the capital market watchdog.