ED Arrests Jaypee Infratech's Manoj Gaur In Rs 12,000-Crore Money Laundering And Fraud Case

The Enforcement Directorate has arrested Greater Noida builders, Jaypee Infratech’s managing director Manoj Gaur on Thursday in cheating case involving homebuyers, sources told NDTV Profit.

According to sources the arrest was linked to alleged Rs 12,000-crore money-laundering and fraud case.

The ED had searched 15 locations linked to Jaypee Infratech Ltd., Jayprakash Associates Ltd. and their associated entities in May, and seized cash amounting to over Rs 1.7 crore.

During the searches, financial documents and digital data, along with property documents in the names of promoters, their family members and group companies were also seized.

The ED had conducted the searches at multiple locations across Delhi, Noida, Ghaziabad, and Mumbai as part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002.

The ED also searched offices of key business associates, including Gaursons India Pvt., Gulshan Homz Pvt. and Mahagun Real Estate Pvt.

The investigation comes on the back of FIRs filed by the Economic Offences Wing of Delhi and Uttar Pradesh Police against JIL, JAL, and their promoters and directors under various sections of the Indian Penal Code, 1860.

The FIRs allege large-scale fraud and criminal conspiracy, including dishonest inducement of homebuyers and investors to invest funds under the pretext of allotment of residential apartments and plots in projects such as Jaypee Wishtown (JIL) and Jaypee Greens (JAL).

The investigation centres on alleged fraud by promoters of Jaypee Wish Town, where flats were sold in 2010–11 but not delivered. Multiple FIRs were filed in 2017 after homebuyers protested delays and alleged diversion of funds.

Jaiprakash Associates, a flagship firm of crisis-hit Jaypee Group, is into cement, construction, power, real estate and hospitality businesses among others.

Jaypee Group firm Jaypee Infratech has already been acquired by Mumbai-based Suraksha Group.