ED Arrests Jaypee Group Ex-CEO Manoj Gaur in ₹14,599 Crore Fraud.

Jaypee Group Ex-CEO Manoj Gaur Arrested by ED in ₹14,599 Crore Money Laundering Case

• Homebuyer Funds Allegedly Diverted to Group Entities

• Multi-City Raids Uncover Complex Financial Trail

• Impact on Thousands of Middle-Class Homebuyers

The Enforcement Directorate has arrested Manoj Gaur, former CEO and executive chairman of Jaiprakash Associates Ltd, in a ₹14,599 crore money laundering case linked to Jaypee Group housing projects. The ED alleges that funds collected from homebuyers for Jaypee Wishtown, Jaypee Greens and other residential schemes were systematically diverted to group entities. The arrest follows multi-city raids, forensic audits and financial trail analysis. Thousands of middle-class buyers remain stuck without homes as investigations deepen.

Click Here To Download the News Attachment

ED Arrests Former Jaypee Group CEO Manoj Gaur in ₹14,599 Crore Homebuyer Fraud Case

The Enforcement Directorate arrested Manoj Gaur, former executive chairman of Jaiprakash Associates Ltd, on Thursday in a major money laundering investigation. The case involves alleged cheating of homebuyers amounting to approximately ₹14,599 crore across Jaypee’s residential projects.

Gaur, who also served as chairman and managing director of Jaypee Infratech Ltd, faces charges under the Prevention of Money Laundering Act, 2002. The ED’s Delhi zonal office executed the arrest following extensive financial scrutiny and evidence analysis.

Homebuyer Funds Allegedly Diverted to Group Entities

The investigation centres on Jaypee Wishtown and Jaypee Greens housing projects, where thousands of middle-class investors purchased apartments that were never delivered. ED’s probe was initiated based on multiple FIRs registered by Economic Offences Wings of Delhi and Uttar Pradesh police.

Aggrieved homebuyers filed complaints accusing Jaypee executives of criminal conspiracy, cheating, and criminal breach of trust. The complainants alleged that vast sums collected for housing construction were systematically diverted elsewhere.

According to claims admitted before the National Company Law Tribunal, Jaiprakash Associates and Jaypee Infratech collected approximately ₹14,599 crore from homebuyers. ED alleges that substantial portions were diverted for non-construction purposes instead of completing promised apartments.

The agency’s investigation revealed that funds were siphoned to related entities including Jaypee Sewa Sansthan, Jaypee Healthcare Ltd, and Jaypee Sports International Ltd. These transfers allegedly occurred through a complex network designed to conceal the movement of homebuyer money.

Former Chairman’s Role as Managing Trustee Under Scanner

ED’s investigation established that Gaur served as managing trustee of Jaypee Sewa Sansthan, one of the trusts receiving diverted funds. This dual role underscored his direct involvement in creating and executing the alleged diversion network, according to investigating officials.

The Sprouts News Special Investigation Team reviewed ED’s case documents, revealing that fund movements were disguised as legitimate corporate transactions and charitable transfers. This layering technique allegedly helped conceal the true nature of the diversion scheme.

On 23 May 2025, ED conducted coordinated search operations at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai. The raids targeted corporate offices and premises of Jaiprakash Associates and Jaypee Infratech.

Also Read: Pune TDR Scam: ₹653 Crore Fraud Exposed in Parvati SRA.

Multi-City Raids Uncover Complex Financial Trail

The May raids yielded substantial financial and digital records demonstrating intricate fund transfer mechanisms. Officials seized ₹1.7 crore in cash alongside documents showing systematic diversion of homebuyer investments to parallel ventures.

ED claims the investigation clearly established Gaur’s central role in planning and supervising the layering of diverted funds. These movements allegedly benefited the company and its affiliates while leaving thousands of homebuyers without their homes.

After gathering material evidence and following due legal procedure, ED arrested Gaur under Section 19 of PMLA. He is expected to appear before a special PMLA court in Delhi for custody proceedings.

Impact on Thousands of Middle-Class Homebuyers

The Jaypee real estate collapse ranks among India’s most contentious corporate failures, affecting thousands of families who invested life savings. Most impacted buyers purchased apartments in the group’s Noida and Greater Noida projects expecting timely delivery.

The Jaypee group has been under insolvency proceedings for several years now. The alleged fund diversion remains a central issue in protracted legal battles between homebuyers, financial lenders, and company management.

Sprouts News analysis indicates that this arrest marks a significant development in the long-pending case. The homebuyer fraud case has been pending investigation since multiple complaints were first registered years ago.

ED maintained that further investigation into the trail of laundered money is currently underway. The agency is tracing end-use of diverted funds and identifying all beneficiaries in the alleged money laundering network.

Legal Proceedings and Next Steps

The case represents one of the largest homebuyer fraud investigations in India’s real estate sector. ED’s action follows years of complaints from buyers who paid substantial amounts but received neither apartments nor refunds.

Legal experts suggest that Gaur’s arrest could expedite resolution for aggrieved homebuyers seeking justice. The custody hearing will determine the duration of ED’s interrogation access to the former Jaypee chairman.

The investigation has broader implications for corporate governance in India’s real estate sector. It highlights regulatory gaps that allegedly allowed systematic diversion of customer funds over extended periods.

ED’s probe continues to examine the complete financial architecture of the alleged fraud. Investigators are mapping money trails across multiple Jaypee group entities and associated trusts to establish the full extent of diversion.

The homebuyer community awaits developments as the legal process unfolds. Many families have been waiting years for either apartment possession or refund of their hard-earned investments.

This enforcement action underscores regulatory authorities’ commitment to addressing systematic financial fraud in real estate. The outcome may set important precedents for handling similar cases involving delayed housing projects and alleged fund misappropriation.