Jaypee Infratech MD Manoj Gaur Arrested by ED in INR 12,000 Crore Money Laundering Probe

According to officials on 13 November, Manoj Gaur, the managing director of Jaypee Infratech Ltd (JIL), has been arrested by the Enforcement Directorate (ED) in relation to a money laundering case worth INR 12,000 crore. Investigators claimed Gaur was involved in the misappropriation and diversion of money obtained from homeowners, which led to his arrest under the Prevention of Money Laundering Act (PMLA).

Officials claim that the case is connected to widespread financial irregularities involving the businesses of the Jaypee Group, namely Jaypee Infratech Ltd and Jaiprakash Associates Ltd (JAL). The examination concentrates on possible fund diversion from housing projects, especially affecting thousands of homeowners who had invested in the company’s real estate enterprises but never took possession of their flats.

Multiple FIRs Filed Against Jaypee Group

The investigation into money laundering is the result of several First Information Reports (FIRs) that were submitted in 2017 following massive homebuyer protests. The Jaypee Group was charged in the FIRs with criminal conspiracy, dishonest inducement, and cheating, alleging that money obtained from investors for housing projects was either misappropriated or misdirected.

The ED claims that money gathered for well-known projects like Jaypee Wishtown and Jaypee Greens, where buyers were promised homes that were never delivered, is among the suspected fraud. Although several of these apartments were sold as early as 2010–2011, investors were left without ownership for years due to construction delays and suspected financial theft.

According to officials, Gaur was instrumental in the company's financial and managerial choices as managing director, and the investigation turned up proof that he had embezzled homebuyers' funds into other group endeavours.

ED Putting Strict Scanner on Jaypee Group

The ED searched 15 premises in Delhi, Noida, Ghaziabad, and Mumbai that were associated with Jaypee Infratech, Jaiprakash Associates, and affiliated businesses as part of the continuing investigation. Along with a number of financial documents, digital records, and property papers connected to promoters, their families, and related entities, the agency also confiscated INR 1.7 crore in cash during these investigations.

Investigators also investigated the offices of Gaursons India Pvt., Gulshan Homz Pvt., and Mahagun Real Estate Pvt., among other real estate firms that were allegedly involved in financial transactions with Jaypee. According to the ED, the confiscated materials are being analysed in order to track down the money trail and ascertain the complete scope of financial diversion. One of the first private developers to work on major integrated housing and infrastructure projects in the National Capital Region (NCR) was Jaypee Infratech.

However, the business had severe financial difficulties, which resulted in loan and homebuyer payment defaults and delays in project completion. After failing to provide thousands of housing units, the company was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) in 2017. Since then, a number of developers and financial organisations have expressed interest in acquiring its assets, and numerous attempts have been made to settle its debt through the National Company Law Tribunal (NCLT).