Earlier in the day, one Mukesh Patel made a bid of Rs 1.39 crore.
The bid on Thursday started at Rs 1.25 crore.
The three-day auction for the suit was opened on Wednesday with an opening bid of Rs 11 lakh.
As the day progressed, the price continued to go up.
Finally at 3.30pm, textile trader Rajesh Juneja quoted Rs 1.21 crore to be the day's top claimant.
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The other bidders on the first day included Rajubhai Aggarwal who bid Rs 51 lakh and Suresh Aggarwal who offered Rs 1 crore.
The suit became a talking point when Modi wore it during US President Barack Obama's visit.
The money from the auction of suit will fund the Prime Minister's ambitious 'Clean Ganga Mission'.
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Apart from the suit, 455 gifts received by Modi and 361 gifts received by chief minister Anandiben Patel are being auctioned to raise funds for the Clean Ganga mission and for the education of the girl child.
The auction of the items will continue till Friday.
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