The central government can take a big step against Rajesh Exports. Now the Ministry of Heavy Industries (MHI) has also become active after the Securities and Exchange Board of India (SEBI) accused the company of financial irregularities and misuse of funds. The ministry is considering excluding the company from the Production-Linked Incentive (PLI) scheme launched for Advanced Chemistry Cell (ACC) battery storage.
PTI quoted sources as saying that a strong opinion has been formed within the ministry that Rajesh Exports should be removed from the list of beneficiaries of this scheme. The final decision in this regard will be taken by Heavy Industries Minister H.D. Will be placed before Kumaraswamy. The minister has recently returned from an official visit to Kyrgyzstan and a decision on this matter can be taken in the coming days.
In fact, SEBI had made serious allegations against Rajesh Exports in a 109-page interim order issued on June 3. According to the regulator, the company overstated its revenue by about Rs 15.15 lakh crore between financial years 2021 and 2025. SEBI claims that this amount was approximately 99.8 percent of the total revenue of the company’s subsidiaries, which was misrepresented.
Apart from this, SEBI has also made allegations of alleged misuse of funds, unclear transactions with related parties and not making necessary disclosures in Alest Pvt Ltd and ACC Energy Storage Pvt Ltd, the units related to the company’s lithium-ion cell business. Considering the seriousness of the matter, SEBI has barred the company’s promoter and chairman Rajesh Mehta from doing any kind of transaction in the company’s securities till the completion of the further investigation. Besides, an order has also been given to conduct a new forensic audit of the company’s accounts.
Now the Ministry of Heavy Industries, which is monitoring the ACC Battery Storage PLI program, has started a detailed study of the SEBI order. The ministry is reviewing all aspects before deciding further action. However, Rajesh Exports and Rajesh Mehta have denied SEBI’s allegations and said that they are fully cooperating with the investigating agencies. If the government decides to exclude the company from the PLI scheme, then it can prove to be a big blow for Rajesh Exports and its impact can also be seen on the ongoing schemes in the battery manufacturing sector of India.
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