The punishment came within two months of the search on the premises of Dahyabhai Gaziwala and his son Mukeshchandra, who had declared their income under the Voluntary Disclosure of Income Scheme that ended on December 31, 1997.

The Gaziwalas were allegedly harassed by the survey team and forced to declare income of Rs 15 lakh under duress. The Gaziwala's explanation that they had already disclosed their income under VDIS and were promised immunity from further raids on the basis of that declaration did not cut ice with the search party.

Not only were they asked to disclose income of Rs 15 lakh but also asked to pay Rs two lakh to escape from further harassment and save tax. The father-son on affidavit said they paid Rs two lakh to Dhavan at his residence. Surat Citizens Council who took up cudgels on behalf of the family sent a memorandum to the Surat Income Tax Commissioner along with the affidavits and send the copies to the Finance Ministry, Chief Commissioner of Income Tax, and chairman of Central Board for Direct Taxes among others.