Kolkata: Following capital market regulator Sebi’s allegation of overstating revenue by as much as Rs 15.15 lakh crore, fund diversion and related irregularities, the company could soon be removed from the government’s PLI scheme, reports have stated.
The company is enlisted in the government’s ACC (Advanced Chemistry Cell) Battery Storage PLI scheme. The Ministry of Heavy Industry is expected to make a final decision in this regard in the next few days, reports have stated. Reports have said that there is emerging consensus in the Ministry of Heavy Industry that the firm should be excluded from the list of beneficiaries. Minister H D Kumaraswamy is supposed to take a call in the matter over the next few days. Meanwhile, Rajesh Exports keeps claiming its innocence.
Inflated revenue of Rs 15.15 lakh crore
Regulator Sebi startled the markets last week, when, in a 109-page interim order, it alleged that Bengaluru-based Rajesh Exports overstated its revenue figures between FY2021 and FY2025 to a mind-boggling extent of Rs 15.15 lakh crore. It was about 99.8% of the total revenue of its subsidiaries. The regulator also said the company has diverted funds through entities linked to the company, conducted opaque transactions with related parties and did not make the required disclosures. Sebi’s investigation also encompassed entities such as Alaste Private Limited and ACC Energy Storage Private Limited, both of which are involved in the company’s lithium-ion cell business.
Sebi has prohibited Rajesh Mehta from buying, selling, or engaging in any transactions in the company’s shares until further notice. The regulator has also ordered a new forensic audit of the company’s accounts.
Will resend documents to Sebi, says Rajesh Mehta
Meanwhile, Rajesh Mehta, the company’s founder and chairman told PTI that they have already sent 300-400 GB of documents to Sebi and it could be possible that the regulator was unable to locate the correct files. he also said that his company will send all the documents again in 15 days to resolve the matter. Mehta also claimed that the order of the regulator classified EBITDA figures as revenue.