New Delhi, Nov 13 — The Enforcement Directorate (ED) on Thursday arrested Manoj Gaur, former Chairman and Managing Director of Jaypee Infratech Limited (JIL), in connection with a money laundering case involving the alleged diversion of funds collected from homebuyers and project delays in Noida.
Gaur, who also served as Executive Chairman and CEO of Jaiprakash Associates Ltd. (JAL), was arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
According to the ED, JAL and JIL collected around ₹14,599 crore from homebuyers, as per claims admitted by the National Company Law Tribunal (NCLT). However, a significant portion of these funds was allegedly diverted for non-construction purposes. Investigations revealed that the money was siphoned off to related entities and trusts, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL). Gaur is the managing trustee of JSS, which reportedly received part of the diverted funds.
The probe stems from multiple FIRs filed by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh, based on complaints from thousands of homebuyers of Jaypee Wishtown and Jaypee Greens projects. The buyers accused the company and its promoters of cheating, criminal conspiracy, and breach of trust after their projects were left incomplete.
In May this year, the ED conducted searches at 15 locations linked to Gaur and the Jaypee Group in Delhi, Noida, Ghaziabad, and Mumbai, seizing ₹1.7 crore in cash, financial records, and property documents.
Jaypee Infratech’s insolvency case, triggered by a ₹526 crore loan default to IDBI Bank in 2017, impacted over 21,000 homebuyers. The Supreme Court later intervened, leading to an IBC amendment recognizing homebuyers as financial creditors. In May 2024, NCLAT approved Suraksha Group’s resolution plan to complete the stalled projects.
