Gujarat HC Order Sparks Move to Freeze Shanti Residences Bank Account

Surat | Gujarat — The ongoing management dispute and financial irregularities in the Shanti Residences Private Limited of the Gajera brothers have now entered a legal phase. Following the strict stance of the Gujarat High Court, the company’s major shareholder Praveen Devkinandan Agarwal has written a letter to ICICI Bank of Surat, urging it to freeze all types of debit transactions from the company’s current account with immediate effect, otherwise the bank may also be in legal trouble.

The High Court has taken a serious note in this matter and directed the police to register an FIR immediately, after which the shareholders of the company have also become aggressive in fighting the legal battle.

The short story of this multi-crore dispute involving the Gajera brothers is that Praveen Agarwal, a shareholder of Mumbai-based Shanti Residences Private Limited, has alleged that there has been large-scale fraud, forgery in documents and misuse of banking instruments in the company. The Agarwal family, which holds approximately 42% stake in the company, alleges that the company’s funds are being embezzled by certain individuals who have taken control of the management.

The dispute is currently pending before the Gujarat High Court under Sections 241 and 242 of the Companies Act. On 15.02.2026, the Gujarat High Court passed an important order directing the police authorities to register a First Information Report (FIR) for these alleged financial crimes. Following this order, it has become imperative to freeze banking transactions to protect the interests of the company.

In view of this, the complainant Praveen Agarwal has written to the manager of ICICI Bank, Textile Market Branch (Ring Road), Surat, that all debit transactions such as cheques, RTGS or online transfers from Shanti Residency Pvt. Ltd. Current Account No. 138705001492 should be stopped immediately. The status quo should be maintained regarding the balance in the account. The account statement of the last 6 months should be handed over for investigation.

These steps are necessary to protect the interests and assets of the company and to prevent further financial loss. Since the investigation is ongoing, the legal provision that the bank may also get into legal trouble if it allows any unauthorized transaction to take place has also been mentioned in the letter. It is likely that many shocking revelations will be made in the police investigation in this dispute in the coming days.