ED Arrests Jaypee Infratech MD in Major Money Laundering Case
The Enforcement Directorate (ED) has arrested Manoj Gaur, former chairman and managing director of Jaypee Infratech Ltd, under the Prevention of Money Laundering Act (PMLA). The arrest follows a detailed probe into alleged diversion of homebuyer funds worth thousands of crores.
Key Takeaways
- Manoj Gaur arrested under PMLA Section 19
- Investigation reveals Rs 14,599 crore homebuyer funds diverted
- Funds allegedly siphoned to group entities including Jaypee Sewa Sansthan
- ED conducted multi-city raids in May 2025
Background of the Case
The ED initiated its investigation based on multiple FIRs filed by Economic Offences Wings of Delhi and Uttar Pradesh police. Homebuyers of Jaypee Wishtown and Jaypee Greens projects had complained of criminal conspiracy, cheating and breach of trust.
Thousands of homebuyers alleged that funds collected for residential project construction were diverted for other purposes, leaving projects incomplete and buyers defrauded.
Scale of Fund Diversion
ED investigation revealed that approximately Rs 14,599 crore collected from homebuyers was substantially diverted to non-construction purposes. The funds were allegedly siphoned off to related group entities including:
- Jaypee Sewa Sansthan (JSS)
- M/s Jaypee Healthcare Ltd. (JHL)
- M/s Jaypee Sports International Ltd (JSIL)
Gaur’s Central Role
The investigation established Manoj Gaur’s central role in planning and executing the fund diversion through a complex web of transactions. Gaur serves as managing trustee of Jaypee Sewa Sansthan, which received part of the diverted funds.
Earlier Search Operations
On May 23, 2025, the ED conducted search operations at 15 locations across Delhi, Noida, Ghaziabad and Mumbai. The raids targeted offices and premises of Jaiprakash Associates Ltd and Jaypee Infratech Ltd.
During these searches, ED seized substantial financial and digital records that provided evidence of money laundering and fund diversion activities.
