Don't even have LIC address: Rajesh Exports chief says no role in investment decision

Rajesh Exports promoter and Executive Chairman Rajesh Mehta has denied any role in LIC's investment decisions, saying the company had no influence over the state-owned insurer's acquisition of shares in the jewellery exporter now facing regulatory scrutiny.

Responding to questions over LIC's 10.8 per cent stake in the company, Mehta said Rajesh Exports had no connection with the insurer's investment choices.

"We don't even know where LIC's office is," Mehta was quoted as saying, dismissing suggestions that the company played any role in LIC's decision to accumulate shares.

The remarks come days after SEBI (Securities and Exchange Board of India) issued an interim order alleging large-scale financial misrepresentation by Rajesh Exports and barred Mehta from dealing in the company's securities until further orders.

LIC currently owns around 10.8 per cent of Rajesh Exports, making it one of the company's largest shareholders.

Mehta argued that LIC acquired its stake gradually through market purchases over nearly two decades and not through any preferential arrangement with the company.

He also contended that even if LIC were to incur losses on its investment, retail investors who sold shares to the insurer during that period would have benefited from the transactions.

The controversy has drawn political attention, with the Congress questioning how LIC accumulated a substantial stake in a company now under SEBI scrutiny and asking whether adequate due diligence was conducted.

SEBI, in its interim order issued on 4 June, alleged extensive misrepresentation of financial statements and diversion of funds, while ordering a forensic review and imposing restrictions on Mehta.

Rajesh Exports has denied wrongdoing and said it is examining the regulator's findings.

The company remains under regulatory scrutiny as investigations continue.