NEW DELHI: The Enforcement Directorate has arrested Manoj Gaur, former Managing Director of Jaypee Infratech Ltd., in connection with a money laundering investigation involving an alleged Rs 14,599 crore fraud against home buyers, according to official sources.
The businessman was apprehended under the Prevention of Money Laundering Act (PMLA).
The agency claims that funds gathered from home buyers were misappropriated to various trusts, resulting in unfinished projects and defrauded investors.
The ED’s investigation revealed that Gaur serves as the Managing Trustee of Jaypee Sewa Sansthan (JSS), which benefitted from these diverted funds. The case against him relates to the alleged cheating of home buyers.
“The ED launched its investigation into the Jaypee group based on multiple FIRs filed by the Economic Offences Wings (EOW) of the Delhi and Uttar Pradesh Police, following complaints from home buyers of Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, fraud, and breach of trust involving the company and its promoters,” the agency stated.
It was further alleged that the money collected from thousands of home buyers for housing projects was misallocated for non-construction purposes, leaving consumers defrauded and their projects incomplete.
“The ED’s investigation indicated that out of the Rs. 14,599 crore collected by JAL and JIL from home buyers (as acknowledged by the NCLT), large sums were redirected for extraneous purposes and siphoned off to associated group entities and trusts, including JSS, Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL),” the statement detailed.
On May 23, the ED conducted searches at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, including the offices of Jaiprakash Associates Ltd. and Jaypee Infratech Ltd.
“During these searches, a significant amount of financial and digital records were seized, along with documents proving the offence of money laundering and fund misallocation,” the statement added.
The ED’s investigation has highlighted Gaur’s central involvement in the planning and execution of fund misuse within a complex transaction framework among Jaypee Group and its affiliates, the agency concluded.
