ED arrests Jaypee Infratech MD for ‘money laundering’

He was arrested under Section 19 of the PMLA, 2002, following a detailed investigation and analysis of evidences gathered during the ongoing probe in an ECIR recorded by the ED under PMLA in connection with the Jaypee Group.

ED had initiated an investigation against the Jaypee group on the basis of multiple FIRs registered by the Economic Offences Wings (EOW) of the Delhi and Uttar Pradesh police based on complaints filed by homebuyers of Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, cheating and criminal breach of trust against the company and its promoters.

It has been alleged that the funds collected from thousands of homebuyers for construction and completion of residential projects were diverted for purposes other than construction, leaving the homebuyers defrauded and their projects incomplete.

ED investigation revealed that out of approximately Rs 14,599 crore collected by JAL and JIL from homebuyers (as per claims admitted by NCLT), substantial amounts were diverted for non-construction purposes and siphoned off to related group entities and trusts, including Jaypee Sewa Sansthan (JSS), M/s Jaypee Healthcare Ltd. (JHL) and M/s Jaypee Sports International Ltd (JSIL).

It has also been revealed during the investigation that Manoj Gaur is the managing trustee of Jaypee Sewa Sansthan (JSS), which received part of the diverted funds.

Earlier, on May 23, 2025, the ED had conducted search operations at 15 locations in Delhi, Noida, Ghaziabad and Mumbai, including the offices and premises of M/s Jaiprakash Associates Ltd. and M/s Jaypee Infratech Ltd.

During the searches, ED seized a large volume of financial and digital records, along with documents evidencing the offence of money laundering and diversion of funds.

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.