The Centre will take a call on removing Rajesh Exports Ltd from the ₹18,100 crore production-linked incentive scheme for advanced chemistry cells later this week, according to two officials close to the development.
“A meeting will be chaired by Union heavy industries minister H.D. Kumaraswamy on the issue in the latter half of this week, likely Thursday or Friday,” said one of the officials on condition of anonymity.
The minister was attending a Shanghai Cooperation Organisation meeting of industry ministers in Kyrgyzstan when, on 3 June, India’s markets regulator passed an interim order against the Bengaluru-based gold and diamond jewellery company, alleging financial misrepresentation to the tune of ₹15 trillion.
Under the 2021 scheme’s request for proposal to set up battery capacity, there is a clause that allows the ministry to disqualify a company.
The RFP states that if any misrepresentation of facts was found during bidding, the bidder would forfeit the bid security and the performance security as damages to the government. The bidder would also not be allowed to participate in any government tenders for two years from the date the government discovered the misrepresentation.
The RFP required the bidder to have a net worth of ₹225 crore per GWh of capacity that it is bidding for.
Mint‘s queries emailed to the Union ministry of heavy industries, Kumaraswamy’s office, and REL didn’t elicit an immediate response.
India’s progress in localizing battery-making capacity assumes strategic importance amid global geopolitical uncertainty and constant disruption of supply chains, said Harsh Pant, vice president of New Delhi-based think tank Observer Research Foundation.
Batteries are a strategic sector because they are one of the key sectors that will define India’s future strategic landscape. If there are concerns related to investments being made under strategic sectors, India risks being a tier-II player in the future,” he said, adding that the strategic nature of energy storage is why topics such as batteries and semiconductors are often part of discussions between India and other countries.
Need for stringent checks
REL received government approval for 5 GWh of battery-making capacity in July 2022. However, according to the latest public disclosures on the PLI ACC scheme’s progress, REL had not installed any battery capacity as of March 2026.
“This case shows the need for tighter checks on PLI beneficiaries, including governance, promoter-level disclosures, related-party transactions, fund flows, ownership changes and project execution milestones,” said Alekhya Datta, director, electricity and renewables division, The Energy and Resources Institute (Teri), a New Delhi-based think tank.
However, REL informed stock exchanges on 4 June that the Securities and Exchange Board of India’s order is interim and that no adverse conclusion has been reached on any aspect.
“The revenues declared by the company are correct, and there is no overstating of revenues. There seems to be some type of communication gap and confusion between Sebi and the company. The company is in the process of clarifying all aspects to Sebi by submitting all the required and relevant documents,” it said.
“The company is confident that Sebi, in its wisdom, will clarify the situation and arrive at the correct conclusion based on the authenticated documents, which are in the process of submission by the company,” it added.
Some lawyers, however, said this clarification is not enough against the mountain of allegations in the Sebi interim order. “Sebi’s finding of 97-99% artificial revenue lacks credible counter-evidence from the company so far. The interim nature of the order provides some room, as Sebi has not concluded its investigation,” said Alay Rizvi, managing partner at Hyderabad-based law firm Accord Juris.