The Enforcement Directorate (ED) Delhi Zonal Office arrested Manoj Gaur, Former Managing Director of Jaypee Infratech Ltd and Former Executive Chairman & CEO of Jaiprakash Associates Ltd (JAL), in a ₹14,599 crore home buyer fraud case. The case is about the alleged diversion of money that was raised for residential projects, and the developments that were left incomplete, and the buyers who were financially affected.
Gaur was taken into custody following an operation under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. The report mentioned that the Patiala House Court in Delhi had given the ED a five-day custody of Gaur to question him further.
Reason for Arrest
The ED's activity is just the tip of the iceberg. It represents the result of a highly detailed investigation by the Economic Offences Wings (EOW) of the Delhi and Uttar Pradesh Police that led the ED to multiple FIRs. In these FIRs, the homebuyers of the Jaypee Wishtown and Jaypee Greens projects accused the company and its promoters of engaging in a criminal conspiracy, cheating, and breached of trust.
The agency alleged that the money raised from thousands of home buyers, which was the construction and completion of residential projects, was diverted to other purposes apart from construction “The investigation has established the central role of Manoj Gaur in the planning and execution of the fund diversion through a complex web of transactions within the Jaypee Group and its associated entities,” ED officials said.
The ED highlighted that Gaur, as the Managing Trustee of Jaypee Sewa Sansthan (JSS), played a pivotal role in orchestrating this fund diversion. “Manoj Gaur was arrested today, i.e. 13/11/2025, under Section 19 of the PMLA, 2002, after following due legal procedure,” the agency added.
Details of the Investigation
The ED’s probe revealed that out of approximately ₹14,599 crore collected by Jaiprakash Associates Ltd. (JAL) and Jaypee Infratech Ltd. (JIL) from home buyers, as per claims admitted by the National Company Law Tribunal (NCLT)—substantial amounts were diverted for non-construction purposes. The funds were reportedly siphoned off to related group companies and trusts, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL).
In the course of the probe, on May 23, 2025, the ED executed simultaneous raids at 15 different places in Delhi, Noida, Ghaziabad, and Mumbai that also included the office of Jaiprakash Associates and Jaypee Infratech. During the searches, the ED seized a large volume of financial and digital records, along with documents evidencing the offence of money laundering and diversion of funds,” officials said.
About Manoj Gaur
According to Jaypee Infratech’s official website, Manoj Gaur, 60, has been associated with the Jaypee Group for around 40 years. He is listed on the company’s Board of Directors and is recognized as one of the company’s promoters. His profile states that he holds a bachelor’s degree in civil engineering from the Birla Institute of Technology and Science, Pilani, and has “vast experience in various sectors including cement manufacturing and marketing, infrastructure, real estate, fertilisers, power, and hospitality, including around 23 years of experience in Corporate and Finance matters of the Company.”
The profile also notes that Gaur played “an important role” in the company’s affairs since 1983, when the first cement plant of the group was being built. Over the decades, he has been closely associated with strategic and financial decision-making across multiple sectors within the Jaypee Group.
The arrest serves as a very clear signal that the police are monitoring very closely the financial transactions and the use of money in the real estate sector. It highlights the risk of people purchasing homes in large housing projects and also the need for strictersupervision of manner in which the developers utilize the funds. The Enforcement Directorate is leading the investigation into a large real estate scam in India with the aim of locating the culprits and following the money trail.
Image source- enforcementdirectorate.gov.in
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