The directorate of enforcement (ED) on Thursday arrested Manoj Gaur, former executive chairman and chief executive officer (CEO) of Jaiprakash Associates Ltd (JAL) and former chairman and managing director (CMD) of Jaypee Infratech Ltd (JIL), in a money laundering case involving alleged cheating of home-buyers to the tune of around Rs14,599 crore. The arrest was made by the agency’s Delhi zonal office under provisions of the Prevention of Money Laundering Act (PMLA), 2002, following what officials described as 'extensive financial scrutiny and evidence analysis' in connection with the Jaypee Wishtown and Jaypee Greens housing projects.
The action comes amid a long-running probe into the Jaypee group’s real estate operations which have faced widespread allegations of diversion of funds, project delays and large-scale financial irregularities affecting thousands of home-buyers.
According to ED, its investigation was based on multiple first information reports (FIRs) registered by the economic offences wings (EOW) of Delhi and Uttar Pradesh (UP) police. These FIRs were filed by aggrieved homebuyers who accused Jaypee’s top executives of criminal conspiracy, cheating and criminal breach of trust, alleging that the company collected vast sums of money for housing projects that were never completed.
The agency stated that JAL and JIL collected approximately Rs14,599 crore from buyers, as per claims admitted by the national company law tribunal (NCLT), but diverted a substantial portion of those funds for non-construction purposes. Instead of using the money to complete the promised apartments, funds were allegedly routed to other group entities and trusts within the Jaypee ecosystem.
During its probe, ED found that funds were siphoned off to related entities, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd (JHL) and Jaypee Sports International Ltd (JSIL). The investigation also revealed that Mr Gaur himself served as the managing trustee of Jaypee Sewa Sansthan, one of the trusts that received part of the diverted funds. ED says this connection underscored Mr Gaur’s direct role in the creation and execution of the diversion network.
Earlier this year, on 23 May 2025, ED conducted search operations at 15 locations across Delhi, Noida, Ghaziabad and Mumbai, including the corporate offices and premises of JAL and JIL. The raids yielded a large volume of financial and digital records, along with documents that investigators say demonstrate a complex web of fund transfers designed to conceal the diversion of home-buyer money. (Read:
Jaypee Group Entities Raided in Multi-city Money Laundering Probe, Rs1.7 Crore in Cash Seized)
Officials claim that the investigation has 'clearly established the central role of Manoj Gaur' in planning and supervising the layering and movement of diverted funds across Jaypee group entities. These movements were allegedly disguised as legitimate corporate transactions and charitable transfers. ED alleges that the fraudulent diversion left thousands of home-buyers without their homes, while the company and its affiliates benefited from the funds through parallel ventures.
After gathering sufficient material evidence and following due legal procedure, ED arrested Gaur on 13 November 2025 under Section 19 of the PMLA. He is expected to be produced before a special PMLA court in Delhi, where the agency will seek his custody for further interrogation.
The Jaypee case has been one of India’s most contentious real estate collapses, impacting thousands of middle-class home-buyers who invested their savings in the group’s Noida and Greater Noida projects. The group has been under insolvency proceedings for several years and the alleged diversion of funds remains a key issue in the protracted legal battles between homebuyers, lenders and the company’s management.
ED maintained that further investigation into the trail of laundered money, including its end-use and beneficiaries, is currently underway.
