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Will Rajesh Exports be dropped from Modi government's PLI scheme?
A final decision on the matter will be taken in the coming days

Will Rajesh Exports be dropped from Modi government's PLI scheme?

Jun 08, 2026
01:09 pm

What's the story

The Ministry of Heavy Industries (MHI) is considering removing Rajesh Exports from its production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage. The move comes after SEBI issued a damning interim order against the Bengaluru-based company over alleged financial fraud. A final decision on the matter will be taken in the coming days, PTI reported.

Fraud charges

SEBI accused Rajesh Exports of inflating revenues

In a detailed 109-page interim order, SEBI has accused Rajesh Exports of inflating revenues by ₹15.15 lakh crore between FY21 and FY25. The regulator alleged that nearly 99.8% of the revenue attributed to its subsidiaries during this period was materially misrepresented. It also flagged illegal fund diversion, non-transparent related-party transactions, and serious disclosure lapses directly linked to Elest Pvt Ltd and ACC Energy Storage Pvt Ltd: two companies involved in the firm's lithium-ion cell business.

Regulatory action

Mehta, firm deny allegations

Following the allegations, SEBI has barred Rajesh Exports' promoter and Chairman, Rajesh Mehta, from buying or selling the company's securities until further notice. The regulator has also ordered a fresh forensic audit of the company's books. As the nodal agency for implementing battery storage PLI scheme, MHI is closely examining SEBI's findings to determine its next legal course of action. Meanwhile, Mehta and Rajesh Exports have strongly denied these allegations while asserting their full cooperation with ongoing investigations.

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Document submission

Already submitted 300-400GB of documents to SEBI: Rajesh Exports

Rajesh Exports has claimed that it has already submitted 300-400GB of documents to SEBI. However, the firm believes that the market watchdog couldn't find the right documents and has promised to re-submit all necessary papers within 15 days. Mehta said that SEBI's June 3 interim order is based on a basic accounting error where EBITDA figures were mistakenly taken as total top-line revenue.

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