Rajesh Exports, now under SEBI scrutiny, once promised Rs 24,000 Crore investment in a Telangana project. It never materialised

Bangalore-based Rajesh Exports is in the middle of a storm as an ongoing probe by the Securities and Exchange Board of India has said that a substantial portion of the revenues reported by its subsidiaries could not be independently verified. The company's shares were trading at Rs 98.73 on June 5, more than 90 per cent below their historical high of Rs 1,029.70. The controversy has also revived attention on one of the company's most ambitious promises—a proposed Rs 24,000-crore investment in Telangana that never materialised.

In June 2022, Rajesh Exports' subsidiary Elest signed a memorandum of understanding (MoU) with the Bharat Rashtra Samithi government to establish a state-of-the-art sixth-generation AMOLED display manufacturing facility in Telangana. Then IT and industries minister K.T. Rama Rao hailed the proposal as one of the largest industrial investments in the state's history and a potential game changer for Telangana's manufacturing sector.

The proposed facility was expected to manufacture advanced display panels for smartphones, tablets, laptops, and other electronic devices. Such plants require sophisticated technology, massive capital investment and specialised engineering expertise, making them among the most complex manufacturing facilities in the electronics industry.

KTR projected the investment as evidence of Telangana's growing ability to attract cutting-edge technology projects. The announcement generated headlines across the country and became a key part of the BRS government's narrative of attracting large-scale investments in electronics manufacturing. Four years later, however, the promised factory is nowhere to be seen.

Instead, Rajesh Exports and its promoter-chairman, Rajesh Mehta, have found themselves at the centre of a major regulatory controversy after SEBI barred them from the securities market through an interim order, alleging massive financial irregularities, questionable transactions, and revenue inflation running into lakhs of crores of rupees.

The contrast is stark. A project that was projected to create around 3,000 direct jobs and establish Telangana as a major electronics manufacturing hub has failed to materialise, while the company behind the proposal is facing serious regulatory scrutiny. Despite the publicity surrounding the announcement, there is little public evidence that the project progressed to the stage of major construction or industrial production.

In its interim order, the market regulator said that revenues worth approximately Rs 15.15 lakh crore reported by Rajesh Exports' subsidiaries between FY21 and FY25 could not be independently verified. SEBI cited concerns regarding unverifiable transactions, deficiencies in documentation, and possible fund diversion. The regulator subsequently barred Rajesh Exports and its promoter, Rajesh Mehta, from accessing the securities market pending further investigation. The allegations have shaken investor confidence and cast a shadow over the company's business operations.

They have also raised questions about the due diligence undertaken before the company was showcased as one of Telangana's marquee investors. This episode has also revived criticism of the BRS government's approach to investment promotion. During his tenure as industries minister, KTR built a reputation for attracting investment announcements and signing high-profile agreements.

The Rajesh Exports proposal aligned perfectly with that narrative. A Rs 24,000-crore investment in advanced electronics manufacturing generated headlines, reinforced the government's image and helped project Telangana as an emerging technology powerhouse. Yet the gap between the scale of the promise and the absence of visible outcomes has fuelled questions about whether adequate scrutiny was done before the project was showcased as a landmark investment.