ED arrests Jaypee Group chief Manoj Gaur in money laundering case

The Enforcement Directorate (ED) on Thursday apprehended Manoj Gaur, managing director of Jaypee Infratech Limited (JIL), in a high-profile money laundering case, accused of allegedly diverting funds entrusted by eager homebuyers awaiting their dream apartments, sources said.

The ED had earlier conducted searches in May at 15 locations tied to Gaur’s real estate companies, including Jaypee Infratech, Jayprakash Associates Limited (JAL), and their associated entities.

During the raids across Delhi, Mumbai, Noida, and Ghaziabad, officials seized Rs 1.7 crore in cash, financial records, digital data, and property documents registered under promoters, their family members, and group firms.

The case stems from a petition filed by IDBI Bank with the National Company Law Tribunal (NCLT), Allahabad, after JIL defaulted on payments exceeding Rs 526 crore. The insolvency proceedings, initiated on 9 August 2017, affected over 21,000 homebuyers, many of whom had booked flats in JIL projects, particularly in Wish Town, Noida, leaving them in limbo as construction funds were allegedly siphoned off.

The matter drew national attention and prompted Supreme Court intervention, which led to an amendment in the Insolvency and Bankruptcy Code (IBC), granting homebuyers the status of financial creditors, thereby giving them a vote in the resolution process.

The case also involved complex legal disputes over transactions in which JIL’s assets were mortgaged to secure debts of its parent company, JAL.

After several rounds of bidding, the National Company Law Appellate Tribunal (NCLAT) approved a resolution plan submitted by the Suraksha Group in May 2024. Under the plan, Suraksha will complete the pending projects and provide enhanced compensation to farmers as per land acquisition agreements.

With IANS inputs