Daijiworld Media Network - New Delhi
New Delhi, Nov 13: The Enforcement Directorate (ED) on Thursday arrested Manoj Gaur, former CMD of Jaypee Infratech Ltd. (JIL) and former executive chairman & CEO of Jaiprakash Associates Ltd. (JAL), in connection with a money laundering case involving diversion of homebuyers’ funds and project delays in Noida, officials said.
Gaur was arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. The ED investigation revealed that of the Rs 14,599 crore collected from homebuyers (as per NCLT claims), significant sums were allegedly diverted to non-construction purposes, leaving thousands of projects incomplete.
Complaints from homebuyers of Jaypee Wishtown and Jaypee Greens led to FIRs being filed with the Economic Offences Wings of Delhi and Uttar Pradesh Police, alleging criminal conspiracy, cheating, and criminal breach of trust against JIL and its promoters. The investigation found that funds were siphoned off to related entities and trusts, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL). Manoj Gaur, serving as Managing Trustee of JSS, allegedly received a portion of the diverted funds.
On May 23, the ED conducted searches at 15 premises linked to Gaur’s companies across Delhi, Noida, Ghaziabad, and Mumbai, seizing Rs 1.7 crore in cash, along with financial and digital records and property documents evidencing money laundering and diversion of funds.
The case traces back to IDBI Bank filing a petition against JIL in the National Company Law Tribunal (NCLT), Allahabad, after JIL defaulted on over Rs 526 crore. The insolvency process, initiated in August 2017, involved over 21,000 homebuyers left in limbo due to diverted funds.
Following Supreme Court intervention, homebuyers were classified as financial creditors under an amendment to the IBC, allowing them a say in the resolution process.
In May 2024, after extensive legal proceedings and bidding rounds, the National Company Law Appellate Tribunal (NCLAT) approved a resolution plan by the Suraksha Group, which will complete unfinished projects and provide enhanced compensation to farmers as per land acquisition terms.
This arrest marks a significant development in the long-running Jaypee Infratech case, highlighting ongoing enforcement action against alleged financial irregularities impacting thousands of homebuyers.