Jaypee Infratech MD Manoj Gaur arrested in Rs 12,000 cr money laundering case

The Enforcement Directorate (ED) has arrested Manoj Gaur, Managing Director of Jaypee Infratech Ltd (JIL), in connection with a Rs 12,000-crore money laundering case, officials said on Thursday (November 13).

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The probe focuses on suspected diversion of funds from housing projects, leaving thousands of homebuyers, who had invested in the company’s real estate ventures but never received possession of their flats, affected.

Jaypee Infratech under ED scanner

According to officials, the case relates to alleged large-scale financial irregularities involving Jaypee Group subsidiaries Jaypee Infratech Ltd and Jaiprakash Associates Ltd (JAL), according to an India Today report.

Funds raised from homebuyers and banks were allegedly routed to other Jaypee Group companies instead of being used to complete the housing projects.

The money laundering case stems from multiple First Information Reports (FIRs) filed in 2017, following widespread protests by homebuyers.

The FIRs accused the Jaypee Group of criminal conspiracy, cheating and dishonest inducement, alleging that money collected from investors for housing projects was misused or diverted.

Misuse of funds

According to the ED, the alleged fraud covers major projects such as Jaypee Wishtown and Jaypee Greens, where buyers were promised homes that were never delivered.

Many of these units were sold as early as 2010-11, but construction delays and alleged misappropriation of funds left buyers waiting for years without possession.

Officials said Gaur, as managing director, was central to the company’s financial and managerial decisions, and that investigators found evidence of siphoning off homebuyers’ money to other group ventures.

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Gaur was taken into custody under the Prevention of Money Laundering Act (PMLA) after investigators alleged his role in the diversion and misuse of funds collected from homebuyers.

ED raids 15 locations

As part of the ongoing investigation, the ED carried out searches at 15 locations linked to Jaypee Infratech, Jaiprakash Associates and related firms across Delhi, Noida, Ghaziabad and Mumbai.

During these searches, the agency seized Rs 1.7 crore in cash, along with financial documents, digital records and property papers linked to promoters, their family members and associated companies.

Investigators also searched the offices of other real estate players believed to have financial dealings with Jaypee, including Gaursons India Pvt., Gulshan Homz Pvt. and Mahagun Real Estate Pvt.

The ED stated that the seized material is being analysed to trace the money trail and determine the full scale of fund diversion.

Severe financial trouble

Jaypee Infratech was among the early private developers involved in large-scale integrated housing and infrastructure projects in the National Capital Region (NCR).

However, the company ran into severe financial difficulties, leading to major delays in project completion and defaults on payments to homebuyers and lenders.

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The firm was admitted to insolvency under the Insolvency and Bankruptcy Code (IBC) in 2017 after failing to deliver thousands of units.

Since then, multiple attempts to resolve its debt through the National Company Law Tribunal (NCLT) have taken place, with several developers and financial institutions expressing interest in taking over its assets.