ED arrests Jaypee Infratech MD Manoj Gaur in ₹12,000-crore homebuyer funds laundering scandal

In a major action against corporate financial fraud, the Enforcement Directorate (ED) has arrested Manoj Gaur, Managing Director of Jaypee Infratech Ltd (JIL), in a ₹12,000-crore money laundering case linked to thousands of cheated homebuyers.

Officials said Gaur was taken into custody under the Prevention of Money Laundering Act (PMLA) for his alleged role in the diversion and misuse of funds collected from buyers of Jaypee’s marquee housing projects, including Jaypee Wishtown and Jaypee Greens.

The investigation, officials added, revealed a systematic siphoning of homebuyer money from real estate projects into other Jaypee Group ventures.

Deepening probe into financial irregularities

The money laundering case stems from multiple FIRs filed in 2017 after nationwide protests by homebuyers who never received possession of their flats. The FIRs accused the Jaypee Group — particularly its subsidiaries Jaypee Infratech Ltd and Jaiprakash Associates Ltd (JAL) — of criminal conspiracy, cheating, and dishonest inducement.

ED sources said funds collected over a decade ago for housing projects were diverted or misused, leaving thousands of investors stranded. Many projects launched as early as 2010–11 remain incomplete, with homebuyers still awaiting delivery.

“Evidence points to a deliberate misuse of homebuyers’ money for other corporate purposes,” an official said, adding that Gaur, as the company’s managing director, had key decision-making powers over project finances.

Searches across four cities

As part of the ongoing probe, the ED conducted searches at 15 premises linked to Jaypee Infratech, Jaiprakash Associates, and related entities in Delhi, Noida, Ghaziabad, and Mumbai. The agency seized ₹1.7 crore in cash, along with financial documents, digital records, and property papers connected to promoters, their families, and associated firms.

Raids were also carried out on other developers that had financial dealings with Jaypee, including Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd, and Mahagun Real Estate Pvt Ltd. Officials said the recovered material is being examined to trace the full money trail and identify further layers of fund diversion.

Insolvency and fallout

Once among the biggest private developers in the National Capital Region (NCR), Jaypee Infratech collapsed under mounting debt and project delays, leading to insolvency proceedings in 2017 under the Insolvency and Bankruptcy Code (IBC).

Despite multiple takeover bids through the National Company Law Tribunal (NCLT), thousands of homebuyers remain stuck without possession or refunds.

The ED’s latest move intensifies scrutiny on the Jaypee Group’s financial operations and signals a widening crackdown on corporate fraud in the real estate sector, which has left scores of middle-class investors in limbo.