Delhi High Court ruled for the extended the judicial custody of Manoj Gaur, the former Managing Director of Jaypee Infratech Ltd (JIL), for 14 days. He was arrested by the The Enforcement Directorate (ED) in the case related to major money laundering.
As per the ED, the fraudulent activities imputed to the two headline residential projects – Jaypee Wishtown in Noida and Jaypee Greens in Greater Noida. The agency believes that Jaiprakash Associates Ltd (JAL) together with its wholly-owned subsidiary, Jaypee Infratech Ltd (JIL) have been collecting over ₹33,000 crore from homebuyers for quite a long time in return for the construction and handing over of housing units.
The Enforcement Directorate, nevertheless, maintains that most of the money was not used for construction but was diverted for non-construction purposes, which has caused the delays and the incomplete residential towers to be extended. Thus, the agency suggests that the diversion of funds constitutes an offense of cheating, criminal conspiracy, and criminal breach.
The Enforcement Directorate, also argues that the majority of the money was not spent on construction but was diverted for non-construction purposes, resulting in prolonged delays and incomplete residential towers. The agency, therefore, indicates that such diversion amounts to cheating, criminal conspiracy, and criminal breach of trust.
After homebuyers lodging several FIRs, the Economic Offences Wings of both Delhi Police and Uttar Pradesh Police initiated the money laundering case that led to the investigation. The FIRs accuse the company and its promoters of using buyer funds for other purposes and not delivering the homes bought.
On the basis of the information from the FIRs, ED also got the permission for the search and seizure scheduled at 15 different locations on May 23 in the early part of the year. The locations were the premises JAL and JIL in Delhi, Noida, Ghaziabad, and Mumbai. These raids were based on the evidences for fund diversion and at the same time the locating of the transactions in the money laundering case that amounts to investment money made by homebuyers.
It has been nearly ten years since the Jaypee homebuyer crisis that has been a cause of worry for thousands of the families that invested their savings in the group's projects. The developments are in line with the ongoing efforts by the ED to establish responsibility and recoup the diverted funds, marking a big step forward by the agency.
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