In a 109-page interim order issued on June 3, Sebi said its investigation and forensic review had uncovered prima facie evidence suggesting that about 97-99% of the company’s revenue may have been inflated, describing the findings as “egregious and unheard of.”

The market regulator has restrained Rajesh Mehta from buying, selling or dealing in securities of Rajesh Exports until further orders. It has also directed the company to cooperate fully with investigators and make true and fair disclosures in its financial statements and related-party transactions.

The order stems from a shareholder complaint received in March 2024 that raised concerns over large outstanding trade receivables in the company’s books.

Following a preliminary examination, SEBI launched a formal investigation covering the period from April 2020 to March 2024 and appointed forensic auditor BDO India Services.

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Rajesh Exports, a Bengaluru-based gold refiner and jewellery manufacturer, is listed on both the NSE and BSE. The company sells gold products domestically and internationally and operates jewellery stores under the Shubh Jewellers brand.
A major part of Sebi case centres on what it describes as persistent non-cooperation by the company and its promoter during the investigation.According to the regulator, Rajesh Exports failed to provide access to key accounting systems, withheld critical financial records and did not furnish complete documentation sought by investigators and forensic auditors.

Sebi noted that the forensic auditor was unable to verify large portions of the company’s transactions because supporting records were either incomplete or unavailable.

The regulator said only a small fraction of sampled transactions could be fully substantiated with supporting documents.

The order also raises concerns regarding the financial reporting of overseas subsidiaries and step-down subsidiaries, including entities in Singapore and Switzerland. Investigators examined transactions involving subsidiaries such as REL Singapore, Global Gold Refineries AG and Swiss precious metals refiner Valcambi.

Sebi said the lack of access to underlying accounting records significantly constrained the forensic review and prevented independent verification of several reported figures.

The regulator further alleged that the company routed funds in a manner that obscured their origin and destination, raising concerns about the authenticity of the reported financial statements.

Given the seriousness of the findings, Sebi said immediate intervention was necessary to protect investors and maintain market integrity.

“The aberrations prima facie noted in the matter, where approximately 97% to 99% of the revenue of the company is inflated, are egregious and unheard of,” Whole-Time Member Kamlesh Chandra Varshney said in the order.

Apart from restraining Rajesh Mehta from dealing in the company’s securities, Sebi has directed Rajesh Exports to provide all pending information sought by investigators within 30 days.

The regulator has also ordered the appointment of a fresh forensic auditor to conduct a more detailed review of the company’s books and transactions.

Cook Defence Systems will continue to operate out of its Stanhope factory

The North East operations of historic steel business William Cook have been acquired by US defence giant Heico in an undisclosed deal.

The move sees the formation of a new company Heico-Cook Defence which will encompass Cook Defence Systems, William Cook Stanhope and William Cook Intermodal. The joint venture is 80% owned by Heico and 20% by William Cook Holdings.

Cook Defence Systems – which has played a key role in providing replacement tracks for Ukraine’s tank fleet – and its sister companies will continue to operate from their purpose-built factory in Stanhope, which employs about 130 people. The two firms have said contracts with employees, customers and supplies remain unaffected.

Meanwhile, William Cook Rail, William Cook Cast Products and their subsidiaries and associates remain wholly owned by William Cook Holdings, which reported turnover of £100m for the year to June 28, 2025. Cook Defence Systems also makes blast-proof components for armoured vehicles and was created in its current form in 1994 by Sir Andrew Cook, who has helped it become a long-standing supplier to national ministries of defence.

Sir Andrew said: “We are proud to have built Cook Defence Systems into a trusted partner to governments, armies and armoured vehicle manufacturers worldwide. In Heico, we have found a long-term partner that values our independence, supports our growth ambitions, and shares our commitment to engineering excellence, quality, and service.

“We are confident about the future of Cook Defence Systems under the joint ownership of Heico and William Cook Holdings.”

Hollywood-based Heico makes parts of large commercial and military aircraft as well as industrial turbines, targeting systems, missiles and electro-optical devices. It reported net sales of more than $4.4bn (£3.2bn) in the year to the end of October, 2025.

Eric Mendelson Heico’s co-chairman and co-chief executive officer, said: “Cook Defence Systems represents a distinctive addition to Heico, with many of the attractive attributes we look for in our businesses. The company has established strong relationships across leading defence OEMs and government customers across multiple critical armoured vehicle platforms.

“Cook’s proprietary technology, consistent aftermarket demand, and exposure to increasing global defence spending position it well for continued growth and long-term value creation. We are pleased to welcome William Cook and his team to the Heico family.”

Last year, Cook Defence Systems hosted the Minister for Armed Forces Luke Pollard as the firm celebrated a three-year contract to supply spare tracks for all of the Army’s in-service armoured fighting vehicles. The firm is also supplying tracks for the Army’s Challenger 3 tanks and Ajax vehicles.

Sir Andrew Cook CBE remains chairman of William Cook Holdings and William Cook and Chris Seymour continue as directors.

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