New Delhi | Nov 13,2025 | Sky Link Times
ED Arrests Manoj Gaur:
The Enforcement Directorate (ED) on Thursday arrested Manoj Gaur, former Chairman and Managing Director (CMD) of Jaypee Infratech Limited (JIL), in connection with a major money laundering case linked to the misuse of homebuyers’ funds and delay of Noida housing projects, officials said.
Gaur, who also served as the Executive Chairman and CEO of Jaiprakash Associates Ltd. (JAL), was taken into custody under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
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ED Alleges Diversion of ₹14,599 Crore Homebuyers’ Funds
According to the ED, investigations revealed that around ₹14,599 crore collected from homebuyers by Jaypee Infratech and Jaiprakash Associates was diverted for non-construction purposes, leaving thousands of families without homes.
The probe was initiated after multiple FIRs filed by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police, based on complaints by homebuyers of Jaypee Wishtown and Jaypee Greens projects, alleging cheating, conspiracy, and breach of trust.
Funds meant for residential construction were allegedly siphoned off to related entities, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL). Gaur, who is the Managing Trustee of Jaypee Sewa Sansthan, is accused of directly overseeing part of the diverted funds.
Raids, Evidence Seizures, and Cash Recovery
On May 23, 2025, the ED conducted searches at 15 premises linked to Jaypee Group companies across Delhi, Noida, Ghaziabad, and Mumbai.
The raids targeted offices and residences associated with Jaypee Infratech Ltd., Jaiprakash Associates Ltd., and their group entities.
Officials seized ₹1.7 crore in cash, along with extensive financial documents, digital data, and property records allegedly showing money laundering and fund diversion.
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Jaypee Insolvency Case and Supreme Court Intervention
The financial turmoil of Jaypee Infratech began in 2017, when IDBI Bank filed a petition in the National Company Law Tribunal (NCLT), Allahabad, after JIL defaulted on a payment exceeding ₹526 crore.
The case soon became one of India’s most high-profile insolvency proceedings, affecting over 21,000 homebuyers.
The Supreme Court later intervened to safeguard the interests of affected homebuyers, leading to a landmark amendment to the Insolvency and Bankruptcy Code (IBC) that recognized homebuyers as financial creditors, giving them voting rights in the resolution process.
After years of litigation, the National Company Law Appellate Tribunal (NCLAT) approved the Suraksha Group’s resolution plan in May 2024, under which the group is tasked with completing pending projects and compensating farmers impacted by land acquisitions.
What Lies Ahead
With Manoj Gaur’s arrest, the ED’s investigation into the Jaypee Group’s financial mismanagement and fund diversion enters a critical phase.
Officials say more arrests and asset seizures could follow as the agency traces the final trail of laundered money and examines cross-company transactions within the Jaypee conglomerate.
The case underscores the continuing crackdown on corporate fraud in India’s real estate sector, particularly where homebuyers’ funds were allegedly misused for unrelated ventures.
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