ED Arrests Jaypee Group's Manoj Gaur in Major Money Laundering Case
The Enforcement Directorate (ED) has arrested Manoj Gaur, the Managing Director of Jaypee Infratech Limited, in a significant money laundering case. The arrest comes after extensive searches and seizures at multiple premises linked to Gaur's real estate development companies.
Enforcement DirectorateManoj GaurJaypee Infratech LimitedMoney LaunderingReal EstateReal EstateNov 13, 2025
The ED had previously conducted searches at 15 premises connected to Manoj Gaur's flagship real estate development companies, including Jaypee Infratech Ltd. and Jayprakash Associates Ltd., as well as their associated entities. These searches were carried out in May and spanned across Delhi, Mumbai, Noida, and Ghaziabad. During the operation, officials seized hard cash amounting to Rs 1.7 crore, along with financial records, digital data, and property documents registered in the names of promoters, their family members, and group companies.
The raids were conducted as part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA). The case gained national attention after IDBI Bank filed a petition against Jaypee Infratech Limited (JIL) in the National Company Law Tribunal (NCLT), Allahabad, following JIL's default on a payment of over Rs 526 crore. The NCLT initiated the insolvency process on August 9, 2017.
The insolvency case involved over 21,000 homebuyers who had booked flats in JIL projects, particularly in Wish Town, Noida. These homebuyers were left in the lurch as funds were allegedly diverted from construction projects. The Supreme Court intervened to protect the interests of the homebuyers, leading to an amendment to the Insolvency and Bankruptcy Code (IBC) that classified homebuyers as financial creditors, giving them a vote in the resolution process.
The case involved extensive legal proceedings, including disputes over transactions where JIL's assets were mortgaged to secure the debts of its parent company, Jaiprakash Associates Limited (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 this plan, Suraksha is to complete the unfinished projects and pay enhanced compensation to farmers as part of the land acquisition terms.
This arrest and the ongoing investigation highlight the serious nature of the allegations and the commitment of the Enforcement Directorate to bring those involved in financial misconduct to justice. The case has significant implications for the real estate sector and underscores the importance of transparency and accountability in financial transactions.
Frequently Asked Questions
What is the Enforcement Directorate?
The Enforcement Directorate (ED) is a law enforcement agency in India responsible for enforcing economic laws and fighting economic crime. It operates under the Ministry of Finance and investigates cases related to money laundering, foreign exchange, and other financial violations.
Why was Manoj Gaur arrested?
Manoj Gaur, the Managing Director of Jaypee Infratech Limited, was arrested by the Enforcement Directorate (ED) in a money laundering case. The arrest is linked to the alleged siphoning of funds paid by homebuyers for the construction of flats.
What is the Prevention of Money Laundering Act (PMLA)?
The Prevention of Money Laundering Act (PMLA) is a law in India that aims to prevent money laundering and to provide for the confiscation of property derived from, or involved in, money laundering. It was enacted in 2002 and is enforced by the Enforcement Directorate (ED).
What happened to the homebuyers in the Jaypee Infratech case?
In the Jaypee Infratech case, over 21,000 homebuyers who had booked flats in JIL projects were left in a difficult situation as funds were allegedly diverted from construction projects. The Supreme Court intervened to protect their interests, leading to an amendment to the Insolvency and Bankruptcy Code (IBC) that classified homebuyers as financial creditors.
What is the role of the National Company Law Tribunal (NCLT) in this case?
The National Company Law Tribunal (NCLT) plays a crucial role in corporate insolvency proceedings. In the Jaypee Infratech case, IDBI Bank filed a petition against JIL in the NCLT, which initiated the insolvency process. The NCLT's decision to initiate the insolvency process was a significant step in addressing the financial distress of the company and protecting the interests of homebuyers.
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