Rajesh Exports founder denies fund diversion in ACC Energy, says Sebi misread entries

Rajesh Exports Chairman Rajesh Mehta on Tuesday denied any fund diversion in its subsidiary ACC Energy and promoter-controlled Elest Ltd, saying Sebi has not understood the accounting entries, even as the company faces potential removal from the Rs 18,100-crore ACC Production-Linked Incentive scheme.

“First of all, Sebi has made observations. That has to be put in the right place first. Point number two, there is zero diversion of funds. They have not understood the accounting entries,” Rajesh Exports founder said. The company is ready to clarify, he added.

The market regulator’s June 3 interim order flagged a circular fund-routing scheme involving ACC Energy Storage and promoter-controlled Elest Pvt Ltd. After Elest acquired 49 per cent of ACC Energy in January 2025, it gave Rs 147 crore to the subsidiary, which returned Rs 112 crore on the same day. ACC Energy Storage also invested Rs 262 crore in Elest without disclosing valuation details. The company’s MD and CFO admitted that they were unaware of the transactions, according to the order.