Govt ignored red flags, SEBI delayed Rajesh Exports probe by 7 months: Cong

The Congress on Friday, 5 June accused the Narendra Modi government of looking the other way despite multiple warning signs in the alleged Rs 15.5 lakh crore Rajesh Exports scam, and questioned why market regulator SEBI (Securities and Exchange Board of India) took seven months to initiate an investigation after the first complaint was filed.

Addressing a press conference in Delhi, Congress media and publicity department chairman Pawan Khera alleged that the delay by SEBI and other investigative agencies had allowed the alleged fraud to go unchecked, resulting in substantial losses for investors.

According to media reports, an investor first flagged irregularities in March 2025, but SEBI began its investigation only in October. Controversial former SEBI chief Madhabi Puri Buch was then heading the organisaion.

"If a complaint was filed in March 2025, why did SEBI wait seven months to act?" Khera asked.

Questioning the role of multiple government agencies, Khera said Rajesh Exports had reported revenues of Rs 15.5 lakh crore, figures that he claimed were accepted without adequate scrutiny. "On whose instructions did this happen? What were agencies such as the FIU, SFIO, DGFT, ED, CBI and SEBI doing all this while?" he asked.

The Congress leader alleged that the fallout from the scam had wiped out nearly Rs 25,000 crore of investor wealth, pointing to the sharp erosion in the company's market value and claiming that Rajesh Exports' market capitalisation had fallen from around Rs 28,000 crore to nearly Rs 3,000 crore as of today, 5 June.

"Who is responsible for these losses? Who will be held accountable?" he asked. "Did the government know that such a massive fraud was taking place? If it did, whom was it protecting? Who will take responsibility for the losses suffered by investors?"

The Congress also questioned the role of the Life Insurance Corporation of India (LIC), noting that the insurer's stake in Rajesh Exports had increased from 1.99 per cent in 2016 to 10.8 per cent by March 2026. "Despite growing concerns, LIC kept increasing its exposure to the company. Why?" Khera asked.

He further alleged that regulators had failed to adequately scrutinise Rajesh Exports' acquisition of a Swiss gold refinery for $400 million in 2015.

Khera also targeted the Centre over the award of a major battery manufacturing project to the company under the Production Linked Incentive (PLI) scheme.

"Rajesh Exports is primarily a gold jewellery and gems company with no established track record in the energy storage sector. Yet, on 23 March 2022, the ministry of heavy industries awarded it a 5 GW advanced chemistry cell manufacturing project worth Rs 18,100 crore," he said.

Claiming that seven other bidders with experience in the energy storage sector were in the fray, Khera asked: "Why was the project awarded to Rajesh Exports instead of companies with proven expertise in the field?"

The BJP and the Centre are yet to respond to the allegations.