Surat | Gujarat — In a major legal twist with far-reaching implications for Surat’s textile business landscape, the Supreme Court of India on Thursday ordered a strict status quo in the high-profile dispute involving the Gajera brothers, effectively halting the sale or transfer of Millennium Textile Market‑2 and Millennium Textile Market‑4.
The bench led by Chief Justice and Justice Joymalya Bagchi passed the order while hearing an appeal against a verdict of the Gujarat High Court. In a crucial move, the court appointed former Chief Justice Sanjiv Khanna as the sole mediator to help resolve the long-running dispute amicably.
“The status quo must be maintained regarding all company properties during mediation,” the court directed, fixing the next hearing for July 17, 2026. The order has halted any major financial or ownership changes, delivering a significant setback to proposed property transactions linked to the case.
However, the court granted limited relief by clarifying that no coercive action will be taken against the petitioners for now. Senior advocates Mukul Rohatgi and Kapil Sibal represented the opposing sides during the proceedings.
Allegations Behind the Dispute
The case stems from complaints filed by Praveen Devkinandan Agarwal, who alleged large-scale financial fraud and corporate manipulation. He claimed that the accused conspired to dilute his 43% stake in Shanti Residences Pvt Ltd to just 4.02% using forged digital signatures and falsified documents submitted to the Registrar of Companies.
According to the complaint, company properties were sold at market rates but recorded at lower Jantri values, with the difference allegedly routed abroad via hawala channels. Agarwal also accused the accused of threats and framing him in false cases.
Following earlier directions, the Surat City Police registered offences under multiple IPC sections including criminal breach of trust, forgery, extortion and conspiracy.
Mediation Ordered, Costs to Be Shared
The Supreme Court instructed both sides to coordinate with Justice Sanjiv Khanna to schedule mediation, with expenses to be shared equally. Legal experts say the move signals the court’s push for negotiated settlement in a case involving complex financial and family disputes.
“The mediation window offers an opportunity to resolve the conflict while safeguarding assets,” a legal observer noted.
Until the next hearing, all major transactions involving the disputed properties remain under judicial freeze, keeping Surat’s high-value textile markets at the centre of a closely watched legal battle.
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