In a major action against financial irregularities in the real estate sector, the Enforcement Directorate (ED) on Thursday arrested Manoj Gaur, Managing Director of Jaypee Infratech Limited (JIL), in a money laundering case pegged at nearly Rs 12,000 crore.
Officials said Gaur was taken into custody under provisions of the Prevention of Money Laundering Act (PMLA) after investigators found evidence indicating the alleged misuse and diversion of funds collected from thousands of homebuyers.
Raids Across Multiple Cities
The arrest comes months after extensive search operations by the ED across Delhi, Noida, Ghaziabad, and Mumbai, where officials raided 15 premises linked to Jaypee Infratech, its parent company Jaiprakash Associates Limited (JAL), and related entities. The agency reportedly seized Rs 1.7 crore in cash, several property papers, and a large cache of digital and financial records during these raids.
Investigators also inspected offices of Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd, and Mahagun Real Estate Pvt Ltd, all of which allegedly had financial links with the Jaypee Group. The material recovered is now being scrutinised to map the movement of funds between group companies.
Roots of the Investigation
The probe stems from a series of First Information Reports (FIRs) filed in 2017 by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police after massive protests by aggrieved buyers. The FIRs accused the group’s real estate arms Jaypee Infratech (JIL) and Jaiprakash Associates (JAL) of cheating and criminal conspiracy, claiming that funds meant for housing projects were siphoned into unrelated businesses.
According to officials, the alleged misappropriation involves projects such as Jaypee Wishtown and Jaypee Greens, where flats sold in 2010–11 were never delivered. “He is suspected to have been steering and motivating the rest of the flock,” said one official, referring to Gaur’s central role in the company’s financial decision-making.
Impact on Homebuyers and Corporate Insolvency
Once a major developer in the National Capital Region (NCR), Jaypee Infratech collapsed under mounting debt and delayed construction, prompting the National Company Law Tribunal (NCLT) to admit it into insolvency proceedings in 2017. The Suraksha Group later acquired its assets through the IBC route.
The ED maintains that funds raised from both homebuyers and financial institutions were diverted to other Jaypee Group entities rather than being invested in pending housing projects. Thousands of families remain without possession of their booked homes years later.
What Lies Ahead
Sources said Gaur had been questioned multiple times before his arrest. The agency will now examine money trails and company records to establish how much of the diverted amount was routed through shell firms or layered via group accounts.
Officials added that the seized digital evidence could reveal new beneficiaries and transactions tied to the alleged laundering network. The probe is expected to expand to other Jaypee Group subsidiaries and associated real estate ventures in the coming weeks.
