Jaypee Group's Ex-Chairman Manoj Gaur ARRESTED! Rs 14,500 Cr Homebuyer Funds Diverted? ED Busts Major Scam!

Real Estate

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Updated on 13 Nov 2025, 11:04 am

The Directorate of Enforcement (ED) has arrested Manoj Gaur, the former Executive Chairman of Jaiprakash Associates Ltd. (JAL) and former Chairman and Managing Director of Jaypee Infratech Ltd. (JIL), under the Prevention of Money Laundering Act (PMLA). The ED alleges that Manoj Gaur played a pivotal role in the planning and execution of diverting substantial funds collected from homebuyers. The investigation indicates that out of nearly Rs. 14,599 crore received by JAL and JIL from homebuyers, a significant portion was diverted for purposes unrelated to construction. These funds were allegedly siphoned off to related group entities and trusts, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL). Manoj Gaur is identified as the Managing Trustee of Jaypee Sewa Sansthan (JSS). The ED's probe was initiated based on multiple FIRs and complaints filed by homebuyers of Jaypee Wishtown and Jaypee Greens projects, who alleged criminal conspiracy and cheating due to the non-completion of their projects. Earlier searches by the ED at various locations yielded significant financial and digital records supporting the allegations.

Impact This development is likely to significantly impact investor sentiment towards the real estate sector, raising concerns about corporate governance and fund mismanagement. It could lead to increased regulatory scrutiny for real estate developers and potential legal challenges, affecting the stock prices of companies with similar operational structures. For homebuyers, it underscores the risks associated with project delays and fund diversion. Impact Rating: 7/10

Difficult Terms: Directorate of Enforcement (ED): A federal law enforcement agency in India responsible for enforcing economic laws and fighting financial crimes. Prevention of Money Laundering Act (PMLA), 2002: An Indian act designed to prevent money laundering and allow the government to seize illegally acquired assets. ECIR (Enforcement Case Information Report): The ED's internal report similar to an FIR, used to initiate investigation into money laundering cases. FIR (First Information Report): A police report registered upon receiving information about a cognizable offense. Economic Offences Wings (EOW): Specialized units within state police forces that investigate complex financial crimes. NCLT (National Company Law Tribunal): A quasi-judicial body in India that adjudicates corporate disputes and insolvency proceedings. Money Laundering: The illegal process of making money obtained from a criminal activity appear to have originated from a legitimate source. Fund Diversion: The act of using funds collected for a specific purpose for other unauthorized activities.