New Delhi, Apr 30: The Supreme Court on Thursday appointed former chief justice of India Sanjiv Khanna as sole mediator to resolve a dispute involving prominent businessman Ashokbhai Haribhai Gajera and others in a case linked to textile market projects at Surat.
A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi was hearing an appeal filed by Gajera and two others against the March 11 order of the Gujarat High Court.
The high court had dismissed a batch of petitions filed by Gajera and others seeking to quash an FIR involving allegations of siphoning off Rs 1,900 crore and forging documents to illegally reduce a partner’s shareholding.
The CJI-led bench heard the arguments advanced by senior advocate Mukul Rohatgi on behalf of Gajera assailing the high court verdict.
Senior advocate Kapil Sibal, appearing for Praveen Deokinandan Agrawal who was allegedly defrauded by Gajera and others, opposed the submissions and said that various documents were forged for siphoning funds to the tune of Rs 1,900 crore.
However, both parties agreed to the suggestion of the bench that they should attempt to resolve the dispute through mediation.
Taking note of the consent, the bench asked former CJI Khanna to act as sole mediator in the case.
The bench asked the lawyers to appear before Justice Khanna who will decide the future course of action and his fees which would be borne equally by both the parties.
In February 2026, an FIR was registered with the DCB Police Station, Surat, and Gajera and others were charged under various sections of the IPC for offences of criminal breach of trust, forgery, using forged documents, and criminal conspiracy.
Besides Ashokbhai Gajera, his three brothers, Vasant Gajera, Chuni Gajera and Bakul Gajera, and five others were booked by the Surat police in the case.
On Thursday, the apex court also directed the parties to maintain status quo with regard to properties of the firm and made clear that there would be no coercive measures against Gajera brothers in pursuance of the FIR.
The high court, in its judgement, had ruled that the presence of a Forensic Science Laboratory (FSL) report, which prima-facie confirms the forgery of signatures, precludes the court from quashing the criminal proceedings at this nascent stage.
Complainant Agrawal, a former partner who initially held a 43 per cent stake in the real estate firm Shanti Residency Pvt Ltd, alleged that the petitioners siphoned off Rs 1,900 crore to Hong Kong through hawala channel.
He further claimed that his signatures, along with those of his wife and father, were forged on 14 documents to show they had declined further share allotments, effectively diluting his stake from 43 per cent to a mere four per cent.
It was argued by Gajera and others that the dispute was purely civil and commercial in nature and moreover, there was an unexplained “gross delay”, as the alleged events occurred between 2010 and 2015, while the FIR was lodged only in 2026.
It was also alleged that the complainant did not utilise statutory remedies under the Companies Act and the registration of the FIR was an “arm-twisting tactic” aimed at extortion.
Agrawal alleged that the Gajera brothers and their associates conspired to siphon off Rs 1,928.39 crore from the firm and subsequently removed him and his family members from the partnership by forging multiple documents, including his digital signature.
