The Enforcement Directorate (ED) arrested Manoj Gaur, Managing Director of Jaypee Infratech Ltd, on Thursday in connection with a ₹12,000 crore money laundering case involving alleged diversion and misuse of homebuyer funds.
Case Background
Gaur was taken into custody under the Prevention of Money Laundering Act following allegations of fund diversion from housing projects, affecting thousands of homebuyers who invested in Jaypee Group’s real estate ventures but never received possession of their flats.
The probe focuses on suspected financial irregularities involving Jaypee Infratech Ltd and Jaiprakash Associates Ltd subsidiaries. The money laundering investigation stems from multiple FIRs filed in 2017 after widespread homebuyer protests, accusing the Jaypee Group of criminal conspiracy, cheating, and dishonest inducement.
Alleged Fraud Details
According to ED, the alleged fraud includes funds raised for prominent projects such as Jaypee Wishtown and Jaypee Greens, where buyers were promised homes never delivered. Many flats were sold as early as 2010-11, but construction delays and alleged fund misappropriation left investors without possession for years.
Officials stated Gaur, as managing director, played a key role in management and financial decisions, with investigation revealing evidence of siphoning homebuyer money into other group ventures.
Searches and Seizures
ED conducted searches at 15 locations connected to Jaypee Infratech, Jaiprakash Associates, and related companies across Delhi, Noida, Ghaziabad, and Mumbai. The agency seized ₹1.7 crore in cash, along with financial documents, digital records, and property papers linked to promoters, family members, and associated entities.
Investigators also searched offices of real estate companies reportedly having financial dealings with Jaypee, including Gaursons India Pvt., Gulshan Homz Pvt., and Mahagun Real Estate Pvt.
Insolvency Context
Jaypee Infratech was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code in 2017 after failing to deliver thousands of housing units. Multiple attempts have been made to resolve its debt through the National Company Law Tribunal, with several developers and financial institutions expressing interest in acquiring assets.
Next Steps
Gaur will be produced before a special PMLA court, where ED is expected to seek custody for further questioning. The agency will continue financial analysis to establish the alleged laundering network’s extent and identify additional beneficiaries.
The case remains open to further arrests and asset attachments as investigators scrutinize fund flows between Jaypee Group companies and partners.
