The Supreme Court on Thursday intervened in a high-stakes legal battle involving allegations of a ₹1,900 crore fraud, appointing former Chief Justice of India Sanjiv Khanna as the sole mediator to resolve the conflict between prominent businessman Ashokbhai Haribhai Gajera and his former business partner.
The bench, comprising Chief Justice Surya Kant and Justice Joymalya Bagchi, was presiding over an appeal filed by Gajera and two others. The appeal challenged a March 11 order from the Gujarat High Court, which had refused to quash an FIR involving charges of criminal breach of trust, forgery, and criminal conspiracy related to textile market projects in Surat.
The legal saga centers on a criminal complaint filed by Praveen Deokinandan Agrawal, a former partner in the real estate firm Shanti Residency Pvt Ltd. Agrawal, who initially held a 43 per cent stake in the firm, alleged that the Gajera brothers—Ashokbhai, Vasant, Chuni, and Bakul—along with five associates, conspired to siphon off approximately ₹1,928.39 crore to Hong Kong via hawala channels.
Furthermore, Agrawal claimed that his signature, along with those of his wife and father, were forged on 14 separate documents. These documents purportedly showed that they had declined further share allotments, a move that Agrawal claims was designed to illegally dilute his shareholding from 43 per cent to just four per cent.
Representing Gajera, Senior Advocate Mukul Rohatgi argued that the matter is essentially civil and commercial in nature, rather than criminal. He further pointed out an “unexplained gross delay” in the proceedings, noting that while the alleged events took place between 2010 and 2015, the FIR was only registered in February 2026. The defense characterized the FIR as an “arm-twisting tactic” aimed at extortion.
Conversely, Senior Advocate Kapil Sibal, appearing for Agrawal, strongly opposed the quashing of the FIR. He emphasized that various documents were forged to facilitate the siphoning of nearly ₹1,900 crore. The Gujarat High Court had previously noted that a Forensic Science Laboratory (FSL) report prima-facie confirmed the forgery of signatures, justifying the continuation of the criminal proceedings.
Despite the gravity of the criminal allegations, both parties reached a consensus before the Supreme Court to attempt a resolution through mediation.
The bench, taking note of this mutual consent, appointed former CJI Sanjiv Khanna to lead the process. The court directed the respective legal teams to appear before Justice Khanna, who will determine the future course of action and his professional fees, which are to be shared equally by both parties.
While the mediation process proceeds, the Supreme Court has directed all parties to maintain the status quo regarding the firm’s properties. Crucially, the court also ordered that no coercive measures be taken against the Gajera brothers in relation to the FIR during this period.
