NEW DELHI: A Delhi court has rejected former Jaypee Infratech managing director Manoj Gaur’s bail application in a money-laundering case, emphasizing that the allegations involve cheating and criminal breach of trust affecting many individuals.
The court remarked that while numerous homebuyers sought justice after investing their life savings in their desired homes, Gaur was benefitting from the alleged proceeds of crime.
Additional Sessions Judge Dhirendra Rana examined Gaur’s plea, noting that Gaur was arrested by the Enforcement Directorate (ED) on November 13, 2022, in relation to a ₹14,599-crore fraud involving homebuyers.
The ED alleges that the money collected from homebuyers for building residential properties was misappropriated for non-construction purposes, resulting in unfinished projects.
It is claimed that two companies, Jaiprakash Associates Limited (JAL) and Jaypee Infratech Limited (JIL), amassed over ₹33,000 crore for constructing residential projects Jaypee Wishtown and Jaypee Greens in Noida and Greater Noida.
In a ruling dated February 16, which was shared on Tuesday, the court stated, “It is on record that Gaur has been charge-sheeted in four cases, and there is prima facie evidence of his involvement in serious criminal activities.”
The judge mentioned that the case does not support the idea that Gaur is innocent or unlikely to commit further offenses if released.
Given that Gaur is named in 11 FIRs on similar charges and has a questionable background, the judge noted a significant risk of his reoffending if granted bail.
The court highlighted that, according to an analysis of JIL and JAL’s accounts, total expenditures amounted to only ₹11,829 crore, with 97 of the proposed 159 towers stalled, indicating 60% of construction was incomplete due to the misappropriation of funds from homebuyers.
The judge added, “The allegations are grave, involving vast amounts of money and impacting countless innocent homebuyers. The court must exercise caution when considering the release on bail in such cases.”
It was asserted that ₹11,335 crore and ₹2,498 crore were misappropriated from JIL and JAL’s accounts, respectively, at Gaur’s direction.
“While homebuyers exhaust themselves seeking justice, the accused was reportedly enjoying the proceeds of his alleged crimes,” the judge remarked.
Gaur did not fulfill the conditions for bail under Section 45 of the Prevention of Money Laundering Act (PMLA), which requires the opportunity for prosecution to contest bail and assurance that the accused is not guilty or likely to offend again while out on bail.
The court concluded there was a strong likelihood he would tamper with evidence, intimidate witnesses, or commit further crimes if released, thus denying Gaur’s bail application.
The ED initiated its inquiry into the Jaypee Group following multiple FIRs filed by economic offences wings in Delhi and Uttar Pradesh, prompted by complaints from homebuyers of the Jaypee Wishtown and Jaypee Greens projects, citing allegations of criminal conspiracy, cheating, and breach of trust by the company and its promoters.
