ED arrests Jaypee Infratech MD Manoj Gaur in Rs 12,000-crore money laundering case
PTC Web Desk: The Enforcement Directorate (ED) has arrested Manoj Gaur, managing director of Jaypee Infratech Ltd (JIL), in a massive Rs 12,000-crore money laundering case linked to the alleged diversion of homebuyers’ funds.
Officials said Manoj Gaur was taken into custody under the Prevention of Money Laundering Act (PMLA) after investigators found evidence that money collected from homebuyers for various projects was misused.
The investigation is focused on Jaypee Infratech Ltd and its parent company Jaiprakash Associates Ltd (JAL), which are accused of large-scale financial irregularities. Thousands of homebuyers reportedly paid for flats in Jaypee’s real estate projects but never received possession.
According to the ED, the probe began after several FIRs were filed in 2017, following protests from affected buyers. The FIRs accused the Jaypee Group of cheating, criminal conspiracy and misuse of investor funds. The agency claims that money meant for housing projects like Jaypee Wishtown and Jaypee Greens was diverted to other group businesses.
As part of the investigation, the ED raided 15 locations linked to the Jaypee Group and its subsidiaries in Delhi, Noida, Ghaziabad and Mumbai. During the searches, officials seized Rs 1.7 crore in cash, property papers, digital data and other financial documents related to the company’s promoters and associates.
The ED is now examining these materials to trace the full money trail and confirm how homebuyers’ funds were diverted.
Jaypee Infratech, one of the early private real estate developers in the National Capital Region (NCR), entered insolvency in 2017 under the Insolvency and Bankruptcy Code (IBC) after failing to deliver housing projects and repay lenders. Despite several attempts to revive the company through the National Company Law Tribunal (NCLT), thousands of buyers are still waiting for their homes.
The ED’s case centres on the allegation that money from buyers and banks was diverted to other Jaypee Group ventures, rather than being used for construction and project completion.
- With inputs from agencies
