In 2013, twelve residents of the Gulbarg Society who were the victim of Gujarat riots, accused Setalvad of collecting donations in the name of riot victims but failing to use them for their benefit and sent a legal notice to her. They claimed that she had collected huge donations from national and international organisations in the name of providing financial assistance for reconstruction of houses or developing the society into a museum but it was not passed to the members of the society. They also sought to ban her organisation "Citizens for Justice and Peace" and prevent them entering the society to organise programmes. The Ahmedabad Crime Branch is conducting an inquiry into the matter.