Authorities have uncovered a scandal involving accounting irregularities worth $159 billion (CHF127 billion). A gold refinery in Ticino and a holding company in Lucerne are at the centre of the case.

Rajesh Exports is India’s fourth-largest company by turnover. But it now appears that much of its reported business was little more than hot air. The figures reported by its Swiss subsidiaries were inflated, while actual earnings were 99% lower than stated. This is the conclusion of a more than 100-page reportExternal link by the Securities and Exchange Board of India (SEBI).

Indian authorities accuse Rajesh Exports of deception, fraud, lack of transparency and manipulation. The company allegedly overstated its revenue to mislead investors. According to the report, the balance sheet was inflated by $159 billion between April 2020 and March 2025 through fictitious earnings.

Swiss companies in the spotlight

Rajesh Exports controls two Swiss companies that are at the centre of the investigation: the Valcambi gold refinery in Ticino and the holding company Global Gold Refineries AG in Lucerne.

According to the Indian financial regulator, business figures from Ticino were allegedly multiplied through the Lucerne-based holding company.

Magic: from $358 million to $159 billion

At the start of the chain is the Valcambi gold refinery in Ticino. The company processes more than seven tonnes of gold per day and employs 177 people. What makes the business unusual is that it works with gold, one of the world’s most valuable precious metals. The dispute centres on how the company’s earnings should be calculated and recorded.

Valcambi records revenue from the services it provides, namely refining and remelting gold. The gold arrives at the refinery, is processed into bars and coins, and is then shipped to major investors and central banks. According to the Indian regulator, Valcambi generated CHF358 million in revenue over five years.

However, through the Lucerne holding company, the Indian owners reportedly recorded the value of the gold sales as revenue rather than only the value added by the work carried out in Ticino. Regulators argue that the real value lies in the refining work, not in the gold itself.

Through the Lucerne holding company, the Indian owners reportedly recorded the value of the gold sales as revenue rather than only the value added by the work carried out in Ticino. Regulators argue that the real value lies in the refining work, not in the gold itself.

In its interim report, the regulator also criticised a lack of transparency. Rajesh Exports allegedly refused to provide investigators with a complete list of Valcambi’s clients, citing Swiss data protection rules. The company’s refusal to hand over the customer list has raised questions about what it may be trying to conceal.

In several statements, Rajesh Exports has rejected the regulator’s allegations, arguing that the findings are based on a misunderstanding and that the document is only an interim report. Valcambi declined to comment to the Reuters news agency, stating that the case concerns the controlling shareholder.