Surat Police Book Gajera Brothers in Massive Rs 1,928 Crore Textile Market Fraud Case
The Detection of Crime Branch (DCB) police in Surat have taken decisive action by booking four prominent Gajera brothers—Vasant Gajera, Chuni Gajera, Ashok Gajera, and Bakul Gajera—along with five other associates in a staggering Rs 1,928.39 crore cheating and forgery case. This high-profile investigation is directly linked to major textile market projects within the city, sending shockwaves through Surat's real estate and business communities.
Complaint Filed by Real Estate Partner After High Court Intervention
The formal complaint was lodged by Pravin Agrawal (51), a partner in Shanti Residency Pvt Ltd, a real estate firm deeply involved in the projects. Agrawal has leveled serious allegations, claiming that the Gajera brothers and their associates orchestrated a complex conspiracy to illegally divert Rs 1,928.39 crore from the company's funds. Furthermore, he asserts that they fraudulently removed him and his family members from the partnership by forging multiple critical documents, including his digital signature, to solidify their control.
An FIR was officially registered following explicit orders from the Gujarat High Court. Agrawal had approached the court seeking directives for the police to lodge a complaint against the Gajera brothers after his repeated applications to the Surat police in 2022 and 2023 failed to result in any FIR. With the high court's intervention, the case has now been registered, and the investigation has been entrusted to the Surat police's economic cell for a thorough probe.
Details of the Textile Market Projects and Alleged Financial Misconduct
The case centers on the Millenium-2 and Millenium-4 textile market projects situated on Ring Road in Surat, where Agrawal and the accused were business partners. Agrawal and his family members collectively held a significant 43% stake in Shanti Residency Pvt Ltd. According to the FIR, Agrawal played a crucial role in helping the Gajera brothers market and sell shops when they launched the original Millenium market project back in 2007. The company, Shanti Residency Pvt Ltd, was specifically formed to execute this ambitious project.
In December 2009, Agrawal was formally inducted as a partner and allocated 75,000 shares, while his wife Shital and father Devkinandan were each allotted 70,000 shares. This allocation was out of a total of five lakh shares, granting the family a substantial 43% ownership in the company. The firm later embarked on two major textile market developments: Millenium-2, comprising 637 shops, and Millenium-4, comprising 2,334 shops, after purchasing the necessary land.
Agrawal alleges that prior to the Covid-19 lockdown, he uncovered that Vasant and his family members had begun renting and selling shops without his knowledge or consent. He further claims that up to 93% of the sale consideration was collected in cash and deliberately not deposited into the firm's official accounts, indicating a massive effort to conceal transactions.
Extent of Alleged Cash Siphoning and Stake Dilution
The FIR provides detailed figures, stating that 413 shops in Millenium-2 and 185 shops in Millenium-4 were sold by the accused. In these transactions, only 7% to 16% of the sale value was documented through cheques in the official sale records, while the remaining vast majority was allegedly taken in cash. Of the total sale value amounting to Rs 2,085.98 crore, merely Rs 157.58 crore was reflected as cheque payments, with the colossal sum of Rs 1,928.39 crore purportedly collected in cash and siphoned off.
Agrawal has also accused the group of using the siphoned cash to purchase land and launch another project, Millenium-3, and diverting funds to various diamond firms owned by the accused, including Laxmi Diamond. When Agrawal raised objections to these alleged acts of cheating and forgery, he claims that Vasant, his brothers, and their associates threatened to implicate him in false cases and even kill him, adding a layer of intimidation to the financial crimes.
Systematic Reduction of Agrawal's Stake Through Forgery
According to the complaint, the accused engaged in systematic forgery, submitting falsified documents to various agencies, including the Registrar of Companies (ROC), to deliberately dilute Agrawal's stake in the company. The company's registration was allegedly shifted to Maharashtra, and between 2010 and 2016, the share capital was increased six times. This strategic maneuvering reduced Agrawal and his family's stake from the original 43% to a mere 4.2%, effectively marginalizing their influence and ownership.
Agrawal has further alleged that company funds were transferred to Hong Kong through hawala channels to a relative of the accused and later routed back into Shanti Residency Pvt Ltd. This circular movement of funds served to further dilute his shareholding, completing a comprehensive scheme to usurp control and assets. The Surat police's economic cell is now tasked with unraveling this complex web of alleged financial deception and legal violations.
