Rs.1,929 Crore Fraud: Lookout Notice Against Gajera Brothers as 9 Go Underground

Surat | Gujarat — In a dramatic escalation of one of Surat’s biggest alleged financial scandals, police have issued a lookout circular against the Gajera brothers, owners of world’s leading diamond company Laxmi Diamond in Surat,  in connection with a staggering ₹1,928.39 crore fraud case. With nine accused, including Vasant Gajera, reportedly absconding, authorities have intensified efforts to prevent any attempt to flee the country.

The action follows directions from the Gujarat High Court to register a complaint in the matter, after which the accused allegedly went underground. The Surat Economic Offences Wing (EOW) is now racing against time to track them down.

“This is not a routine financial dispute. The scale of manipulation and alleged embezzlement runs into thousands of crores. We are conducting a thorough investigation into every transaction and document,” a senior police official said.

The FIR was lodged based on a complaint by Pravin Devkinandan Agarwal, who alleged that he was illegally removed as director of Shanti Residency Pvt. Ltd. on January 1, 2015, through a forged resignation letter bearing fabricated signatures. According to investigators, the accused conspired to create and submit the false document without his knowledge.

Police have booked more than eight individuals, including Chunibhai Haribhai Gajera, Vasant Haribhai Gajera and Ashokbhai Haribhai Gajera, under various sections of the IPC related to fraud, forgery, criminal breach of trust and conspiracy.

The complaint further alleges sophisticated misuse of digital technology. Investigators claim bogus digital signatures were generated with the help of a private operator and uploaded with the Registrar of Companies, thereby misleading government authorities and altering official records.

Major irregularities have also been alleged in the company’s shareholding structure. Forged signatures of Agarwal, his wife and father were reportedly used in equity share offer letters, diluting the family’s stake while diverting financial benefits elsewhere.

The case also revolves around the sale of nearly 185 shops in the Millennium-02 and Millennium-04 projects. According to the FIR, only Jantri (government guideline) values were recorded in official books, while nearly 84% of the actual sale proceeds were allegedly siphoned off and not reflected in company accounts.

Police sources estimate the total alleged forgery and financial misappropriation at ₹1,928.39 crore — making it one of the largest white-collar crime investigations in the city’s history.

Investigators are now analysing call detail records of the accused to trace their movements and identify possible collaborators. “We are tracking digital footprints, financial trails and communication records. No one involved will be spared,” another officer stated.

The FIR also alleges intimidation tactics. When Agarwal objected to the transactions, he reportedly faced threats of false criminal cases, imprisonment and harm to family members if he pursued legal remedies.