Prime Minister Narendra Modi's suit on display at the auction.
An offer of Rs. 2.65 crore has been made for Prime Minister Narendra Modi's suit with his name woven into it in gold pinstripes, which is being auctioned in the port city of Surat in Gujarat.
The highest bid so far has been made by a pair of diamond merchants Mukesh Patel and Sanjay Movaliya.
Hitesh Patel, a Surat-based diamond merchant, had earlier couriered Rs 1.81 crore.
The tailored navy suit worn by PM Modi during US President Barack Obama's visit last month was mocked by opposition parties as an example of narcissism and extravagance in a country where many live in extreme poverty.
The suit is being auctioned along with 450 other gifts Mr Modi has received since becoming prime minister. The bids will close this evening. The money will be used for the PM's project to clean the Ganga.
From the first bid of Rs 51 lakh on Wednesday, the offers have rapidly shot up and at least two of the bidders have allegedly faced tax scrutiny.
On Thursday, a diamond merchant, Mukesh Patel offered Rs. 1.48 crore for the suit.
"It's a diamond and I know its value," said Mr Patel. He said Income Tax raids on him had nothing to do with the auction. "I am not dealing with black money. I am buying the suit with white money," he told NDTV.
Gujarat-based industrialist Komalkant Sharma, who bid Rs 1.41 crore, was also raided three years ago, but he claims it was the result of a technical error and that he has been cleared.
Rajesh Maheshwari, a nursery school teacher in Surat, offered Rs. 1.25 crore raised by a group of 250 people who contributed Rs 50,000 each.
"It is impossible for a middle class man to bid for such a suit. People spend Rs. 10 crore on a wedding. Imagine how proud a groom will be to wear the suit worn by India's Prime Minister on a historic occasion. We can also charge Rs. 1,000 for a selfie with the suit and donate that money for children's education," Mr Maheshwari told NDTV.