Gujarat HC Rejects Plea in Rs.1900 Cr Gajera Fraud Case, Probe to Continue

Ahmedabad | Gujarat — In a significant setback for the Gajera brothers of Surat’s prominent Laxmi Diamond Group, a De Beers sightholder company, the Gujarat High Court has refused to quash the FIR in the alleged ₹1900 crore fraud and forgery case, allowing the investigation to proceed amid serious allegations of financial misconduct.

Delivering a strong message, the court observed that there is sufficient prima facie evidence against the accused and that halting the probe at this stage would not be in the interest of justice. “The investigation is at a preliminary stage, and the material on record indicates possible criminal involvement,” the court noted, rejecting the plea filed by the accused, including Laxmi Diamond Group chairman Vasant Gajera.

The case stems from a complaint filed by Praveen Devkinandan Agarwal, also known as Praveen Bhut, who has accused the Gajera brothers of orchestrating a massive financial scam. According to the complaint, his 43% stake in a private company was allegedly reduced to just 4.02% through the use of forged digital signatures—an act he claims was carried out without his consent.

The allegations further state that the accused generated approximately ₹2085 crore through the sale of shops in Millennium-2 and Millennium-4 Textile Market projects, but only ₹157 crore was officially recorded through banking channels. The remaining amount, the complainant claims, was siphoned off as unaccounted cash.

In addition, the Gajera brothers are accused of embezzling nearly ₹1928 crore and manipulating company records. The complainant has alleged that his family members were illegally removed as directors and that forged documents were submitted to the Registrar of Companies (ROC) to legitimize these changes.

Officials familiar with the case say the scale of the alleged fraud and the complexity of financial transactions make it a critical investigation. “This is not a routine financial dispute. The allegations involve systematic forgery, diversion of funds, and corporate manipulation,” a senior अधिकारी associated with the probe said.

The case is currently being investigated by the Economic Offences Wing (EOW) of Surat Police, which is expected to intensify its probe following the High Court’s decision. Investigators are now likely to examine financial trails, digital records, and company filings in greater detail to uncover the full extent of the alleged scam.

Legal experts believe the court’s refusal to intervene at this stage highlights the seriousness of the charges. “When the court finds prima facie evidence, it generally allows the investigative agencies to complete their work without interference,” said a legal analyst.

Meanwhile, sources indicate that the Gajera brothers are preparing to challenge the order through further legal remedies.