According to police, businessman Piyush Manharlal Gandhi used to borrow money on interest from the Jagdamba Enterprises and Finance Company run by one Umesh Sharma and his wife from their premises in Tulsidham Society, opposite Vadodara airport.

Gandhi introduced one Madhav Hadbe, who needed Rs 7.11 lakhs to settle a debt, to Laxman Sharma, Umesh's brother. The deal, which was signed on court paper, paid Hadbe Rs 11,000, while the rest was to be paid directly to his creditors.

However, when Sharma started the payment, he came to know that the total money due to the creditors was Rs 70,000 more than the agreed amount. They refused to pay this extra amount, the police said. Hadbe then threatened to cancel the deal. Annoyed, the Sharma brothers and four of their associates raided Gandhi's and kidnapped him to pressurise Hadbe to sign the deal. However, they were all arrested. While Sharma brothers were imprisoned, their associates received bail.

According to police, the Sharma brothers had earlier been booked for their involvement in a railway travel pass racket.