IT Raids intensify in Surat as alleged Mehul Choksi-Laxmi group links come under scanner

Surat | Gujarat —- Surat’s diamond and real estate corridors were gripped by tension as the Income Tax Department launched wide-ranging searches amid allegations of money laundering and hawala transactions allegedly linked to fugitive diamantaire Mehul Choksi and several Surat-based firms. Officials said the action is part of a broader probe connected to the multi-crore Punjab National Bank (PNB) fraud case, in which Choksi is a prime accused.

According to sources familiar with the investigation, multiple premises associated with the Laxmi Group of Companies and Shanti Residences Private Limited were searched. The inquiry is examining suspected financial dealings involving individuals identified as Ashok Gajera, Vasant Gajera, Rakesh Gajera, Chuni Gajera and others associated with the Laxmi Group. Investigators are also questioning the role of intermediaries and partners, including Pravin Agarwal alias Pravin Bhoot and broker Anil Bagdanawala.

Officials allege that funds were siphoned off through real estate transactions in Surat’s Millennium Textile Market projects. Preliminary findings suggest that a large portion of shop sale proceeds in Millennium-2 and Millennium-4 markets were allegedly received in cash, with only a small percentage routed through banking channels. Investigators are probing claims that these cash proceeds were subsequently transferred abroad through hawala networks.

A senior official, speaking on condition of anonymity, said, “We are verifying whether unaccounted cash generated from local projects was routed overseas and then brought back as purported foreign investment. All transactions are being examined.”

The probe has also turned its focus on alleged foreign inflows linked to Hong Kong. Investigators suspect that money may have been routed to Hong Kong-based entities and reinvested into Surat firms, including Shanti Residences Private Limited, thereby increasing shareholding stakes. The questioning of company directors is currently underway to establish the source and trail of funds.

Mehul Choksi, owner of Gitanjali Gems and an accused in the Rs 15,000-crore PNB loan fraud, is suspected by agencies of having parked funds with select diamond-exporting and real estate companies before fleeing India. Enforcement Directorate records show that a chargesheet under the Prevention of Money Laundering Act (PMLA) was filed in Mumbai in March 2020, in which certain firms and individuals were named as co-accused alongside Choksi.

Legal experts caution that the investigation is still in progress. “These are allegations under probe, and conclusions can only be drawn after forensic audits and corroboration of evidence,” said a Surat-based tax lawyer.

The Income Tax Department has not issued an official statement detailing the findings so far, but officials confirmed that document verification, digital data analysis and financial audits are ongoing.