Congress Questions LIC’s 10.8% Stake in Rajesh Exports Amid SEBI Probe

The Congress on Thursday raised concerns over Life Insurance Corporation of India’s (LIC) holding of around 10.8% stake in Rajesh Exports , a company currently under scrutiny by the Securities and Exchange Board of India (SEBI), questioning whether such a “substantial investment” was influenced by the ruling establishment.

Congress leader Jairam Ramesh cited SEBI’s interim order dated June 3, 2026 , which has alleged a “gigantic scam” involving Rajesh Exports, a gold refining and jewellery firm. He said the regulator has pointed to massive misrepresentation of revenues over a five-year period from 2020-21 to 2024-25 , involving figures that could amount to an estimated ₹15 lakh crore , while noting that investigations are still ongoing and a final report is awaited.

Ramesh described the alleged scale of irregularities as “mind-boggling” and questioned how LIC and banks, which also have significant exposure to the company, failed to detect such alleged fraud despite holding substantial stakes. He further asked how LIC’s investment decisions could overlook what he termed a major financial discrepancy and suggested whether the acquisition was driven by instructions from the “ruling ecosystem.”

Meanwhile, SEBI has barred Rajesh Exports promoter and CEO Rajesh Mehta from dealing in the company’s securities, alleging large-scale misrepresentation of financial statements and diversion of funds. The regulator has also directed the company to ensure accurate disclosures under Listing Obligations and Disclosure Requirements (LODR) norms.

In its 109-page interim order , SEBI said its probe found instances of inflated revenues , routing and layering of funds through personal accounts and related entities, and inadequate supporting documentation. It also noted repeated non-cooperation by the company and its statutory auditors , including failure to provide audit working papers.

SEBI observed that alleged revenue inflation of 97-99% was “egregious and unheard of,” and ordered a fresh forensic audit while directing full cooperation from the company and its promoter.