In a significant development that has sent ripples through Gujarat’s business community, Surat Police have issued Look-Out Circulars against four Gajera brothers and their nephew following allegations of a massive financial fraud. The circulars, dated February 24-25, 2026, effectively bar Vasant, Chuni, Ashok, and Bakul Gajera, along with nephew Rakesh Gajera, from leaving the country as investigations move forward.
The Economic Offences Cell registered the case after what officials describe as directions from the Gujarat High Court. The alleged fraud amount – ₹1,928.39 crore – places this among the larger financial crimes to emerge from the region in recent years.
How the Case Came to Light
The complaint originates from businessman Pravin Agrawal, a partner in Shanti Residency Pvt Ltd. Agrawal has accused the Gajera family of financial manipulation and document forgery tied to commercial property transactions on a significant scale.
Police officials confirm that the case has been registered under serious sections of the law dealing with fraud, criminal conspiracy, and forgery. The Economic Offences Cell has taken over the investigation, indicating the complexity and scale of the alleged operations.
Key Details at a Glance
- Accused: Vasant Gajera, Chuni Gajera, Ashok Gajera, Bakul Gajera, and nephew Rakesh Gajera
- Action taken: Look-Out Circulars issued February 24-25, 2026
- Alleged fraud amount: ₹1,928.39 crore
- Complainant: Pravin Agrawal, partner at Shanti Residency Pvt Ltd
- Filed by: Surat Police Economic Offences Cell
- Trigger: Directions from Gujarat High Court
- Current status: Accused untraceable, mobile phones switched off
What the FIR Alleges
The First Information Report contains several serious allegations that investigators are now working to verify.
Stake Dilution Through Alleged Forgery
At the heart of the complaint is a claim about ownership stakes. The complainant family’s share in the company was allegedly reduced from 43 percent to just 4.2 percent through the use of forged documents and digital signatures.
If proven, this would represent a systematic effort to strip the original partners of their legitimate business interests. Investigators are currently examining digital trails and company filings to trace how this change was effected and who authorized it.
Unaccounted Cash Transactions
The financial scale of the alleged fraud becomes clear in the transaction details. According to the FIR, the sale of 598 shops in the Millennium-2 and Millennium-4 textile markets generated ₹2,085.98 crore.
Here’s where the allegation gets specific. Only ₹157.58 crore of this amount was reportedly reflected through cheque transactions. The remaining ₹1,928.39 crore – the vast majority – was allegedly collected in cash and kept outside official records.
Such a discrepancy, if established, would point to a parallel financial system operating beyond the reach of tax authorities and regulatory oversight.
Alleged International Money Trail
The investigation isn’t staying within Indian borders. Agencies are probing claims that part of the siphoned money was routed abroad through hawala channels, with Hong Kong mentioned as a possible destination.
According to the allegations, funds sent out may have been later brought back as foreign investment, potentially to restructure shareholding patterns and give the transactions a veneer of legitimacy.
Officials caution that this angle remains under investigation and final findings are yet to be confirmed.
Reported Financial Links Under Scrutiny
Another dimension that investigators are examining involves possible connections between the Gajera business network and fugitive diamond trader Mehul Choksi. Choksi is already a key accused in the Punjab National Bank fraud case and has been at the center of multiple investigative agencies’ attention.
Police sources state that this aspect remains under verification. Any established link could widen the scope of the investigation significantly.
Where the Accused Are Now
Here’s where the situation takes a turn toward the dramatic. Police sources indicate that the accused individuals are currently untraceable. Their mobile phones are reportedly switched off, making electronic tracking impossible in the immediate term.
Multiple police teams have been deployed across states in an effort to locate them. The Look-Out Circulars serve as an additional layer of defense – if any of the accused attempt to leave the country, immigration authorities will detain them or alert police immediately.
What Happens Next in the Investigation
The Economic Offences Cell has its work cut out. Several lines of inquiry are being pursued simultaneously.
Financial Records and Property Transactions
Investigators will need to trace the flow of funds through company accounts, personal accounts, and any informal channels that may have been used. Property transactions linked to the alleged fraud will be scrutinized for documentation and authenticity.
Forensic Audits
Company documents are likely to undergo forensic audits to determine which signatures were genuine, which were forged, and who had access to digital signature tools at the relevant times.
Digital Signature Usage
The alleged use of forged digital signatures opens up a technical line of investigation. Digital trails, access logs, and authentication records could provide evidence of who was behind the changes in ownership records.
Cross-Border Transactions
If funds were indeed routed through Hong Kong or other international destinations, agencies may need to coordinate with foreign counterparts. Such investigations are complex and time-consuming, often requiring formal requests for information under mutual legal assistance treaties.
Legal Context and Presumption of Innocence
At this stage, it’s important to understand where things stand legally. The allegations remain under investigation. No court has pronounced guilt. All accused individuals are presumed innocent unless proven otherwise under Indian law.
The Look-Out Circulars are a preventive measure, ensuring that the accused remain available for investigation and legal proceedings. They do not constitute a finding of guilt.
What This Means for Surat’s Business Community
Surat has long been known as a hub of diamond trading and textile commerce. Cases of this magnitude inevitably send shockwaves through business circles. Partners review their own agreements. Companies double-check their filings. Investors become more cautious.
The Gajera name has been associated with business activities in the region for years. The allegations, if proven, would represent a significant fall from grace. If not proven, the reputational damage may still linger.
For now, the business community watches and waits as investigators do their work.
Looking Ahead
The coming weeks will likely see intensified efforts to locate the accused. Multiple police teams remain deployed. Technical surveillance may yield results if phones are reactivated or digital footprints appear. The Look-Out Circulars seal the airports, but domestic movement remains possible.
The Economic Offences Cell will also focus on building the documentary evidence trail. Financial fraud cases of this scale require meticulous reconstruction of transactions, often going back years. Paper trails, digital records, witness statements – all must be gathered and verified before charges can be formalized.
For the complainant, the issuance of Look-Out Circulars represents a significant milestone. It signals that authorities take the allegations seriously and are taking steps to ensure the accused cannot flee jurisdiction.
For the accused, the legal road ahead looks challenging. Even if they eventually surface and cooperate with investigations, the shadow of a ₹1,928 crore fraud allegation does not lift easily.
As with all such cases, the coming months will separate allegation from evidence, and evidence from proof. Until then, the investigation continues.