IT Raids on Gajera Group Expose Web of Benami Land Deals and Multiple Directorships in Surat

Surat | Gujarat — A massive Income Tax search operation on the influential Gajera family in Surat has thrown up startling revelations, pointing towards large-scale tax evasion, benami land transactions and a complex corporate web spanning dozens of companies. Preliminary findings by the Income Tax Department suggest that the alleged financial irregularities could snowball into what officials describe as one of the biggest black money cases in the city’s history.

According to sources familiar with the investigation, members of the Gajera family hold directorships in an unusually high number of companies. Vasant Gajera is reportedly a director in as many as 32 companies, while Chuni Gajera is linked to 41 companies. Vrushal Gajera holds directorships in 23 companies and Jatin Gajera in eight. Investigators believe this corporate structure may have been used to route funds, suppress taxable income and camouflage ownership of assets.

The probe has also revealed an alleged modus operandi to evade income tax and bypass land ceiling laws. Sources said that land parcels were first purchased in the names of other individuals and later transferred to the Gajera group after “certain arrangements” were made. “This pattern clearly indicates benami transactions aimed at avoiding tax liability and legal scrutiny,” a senior official said, adding that a detailed document-by-document verification is currently underway.

The Income Tax Department’s DDI Wing has intensified scrutiny of financial transactions linked to these companies. During the second and third days of the operation, officials reportedly seized unaccounted cash exceeding Rs 1.30 crore, along with documents indicating large two-digit financial transactions. Substantial investments in the stock market, gold and silver jewellery have also come under the scanner.

Investigators have further found evidence suggesting that Vasant Gajera made heavy investments in land projects associated with his ‘vevai’ (son-in-law). “These investments are being examined to determine the source of funds and possible tax evasion,” an official said.

The ongoing searches follow a notice issued by the Income Tax Department to Vasant Gajera & Company nearly ten days ago, seeking an explanation for suspected tax discrepancies. Officials said the large-scale raid was launched after the response was found to be unsatisfactory.

On Wednesday, the department carried out its third consecutive search at ‘Vrushal’, the Surat residence of Vasant Gajera. Around 15 Income Tax officers conducted a detailed inspection of cash, jewellery, diamonds and documents, while a heavy police contingent, including women officers, was deployed for security. Several lockers are yet to be opened, raising expectations of further recoveries running into crores.

Adding another serious dimension to the case, officials confirmed that the DDI Wing is also probing potential links to investments made by fugitive diamantaire Mehul Choksi. “We are verifying transactions related to jewellery and property to trace any unaccounted investments connected to him,” a source said.

With objectionable documents and digital data now being analysed, officials hinted that major disclosures are imminent. “This investigation is far from over. The scale of financial irregularities suggests that significant revelations are likely in the coming days,” a senior officer said, signalling tougher action ahead.