One-ounce gold bars at the Valcambi SA precious metals refinery in Balerna, Switzerland, on Friday, Sept. 9, 2025. Valcambi SA, Switzerland’s largest refiner, processes up to 2,000 tons of precious metals a year at its site in Balerna on the border with Italy. Photographer: Francesca Volpi/Bloomberg via Getty Images
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Indian authorities uncovered multiple accounting and operational irregularities at one of the country’s largest gold companies, Rajesh Exports, according to an investigation released Wednesday, weeks after market regulators raised concerns over the company’s reported revenue.
The Bengaluru-based company, which also owns Switzerland-based major gold refiner Valcambi, reported consolidated revenue of more than 7.7 trillion rupees ($81 billion) last year, the Directorate of Enforcement said in a statement.
Its managing director was paid a monthly salary of 17,000 rupees (around $180) and the chief financial officer had not received a salary since 2020, the agency said.
“The company’s key business indicators showed significant departures from normal commercial practices,” the agency said.
Shares of the company dropped around 5% on Thursday before hitting the exchange-imposed lower trading limit, according to data on LSEG.
Search and seizure operations at the company’s offices in Bengaluru and Mumbai found that the firm had insufficient records of foreign transactions, accounting discrepancies totaling 30 billion rupees, alleged stock manipulation and an under-reporting of physical gold inventory by around 40%, the investigation revealed.
Earlier this month, the Securities and Exchange Board of India, in a separate investigation, found that 97% to 99% of the company’s revenues appeared inflated. The regulator described the revenue gap as “egregious and unheard of” and issued a notice seeking an explanation.
In its response, Rajesh Exports had said that it “has never indulged in any mis-reporting and all its filings, financial numbers including revenue is true and genuine.”
CNBC has reached out to Rajesh Exports and Valcambi for comment and is awaiting a response.
Rajesh Exports is a gold refiner and manufacturer of a wide range of gold products. It exports gold jewelry and gold products from Switzerland, India, and Dubai.
