Enforcement Directorate Arrests Manoj Gaur: Jaypee Infratech's MD in Major Real Estate Fraud
The Enforcement Directorate (ED) has arrested Manoj Gaur, the Managing Director of Jaypee Infratech, under the Prevention of Money Laundering Act (PMLA). The arrest is in connection with a large-scale fraud involving homebuyers and financial irregularities.
Real EstateFraudMoney LaunderingHomebuyersManoj GaurReal EstateNov 13, 2025
The ED has been questioning Gaur multiple times before finally taking him into custody. According to sources, the probe has revealed large-scale financial irregularities, which have caused significant distress among homebuyers. The agency has traced the money trail after numerous complaints from potential buyers who alleged that their funds were diverted to other companies or projects.
As per the complaints, senior Jaypee Infratech officials had collected large sums of money from the public for various projects but failed to complete them on time. Investigators have found that some of the funds collected by the company were diverted irregularly. The ED suspects that the money, which was meant for project construction, was routed through shell companies, laundered to appear legitimate, and then spent improperly. The funds collected from homebuyers and investors were misused and diverted, causing significant financial losses to the public.
In May, the ED conducted a major operation as part of its investigation into the alleged fraud, estimated to be worth Rs 12,000 crore. The operation targeted Jaypee Infratech and Jaypee Associates, among several other major real estate groups, spanning 15 locations across the National Capital Region and Mumbai. The raids included offices and properties linked to the entities, further intensifying the scrutiny on the company’s financial practices.
The arrest of Manoj Gaur is a significant step in the ongoing investigation, which aims to bring accountability and justice to the affected homebuyers. The ED’s actions are expected to set a precedent for stricter regulation and oversight in the real estate sector, ensuring that such large-scale frauds are prevented in the future.
Jaypee Infratech, one of the prominent real estate developers in India, has been under scrutiny for several years due to delays in project completions and financial mismanagement. The company’s troubles have affected thousands of homebuyers, many of whom have been waiting for their homes for years. The arrest of Manoj Gaur is a clear message that the authorities are taking a firm stand against such malpractices in the real estate industry.
Frequently Asked Questions
Why was Manoj Gaur arrested?
Manoj Gaur, the Managing Director of Jaypee Infratech, was arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) for alleged cheating and money laundering involving homebuyers.
What are the allegations against Jaypee Infratech?
The allegations against Jaypee Infratech include large-scale financial irregularities, cheating homebuyers, and misusing funds collected for project construction. The ED has traced the money trail and found that funds were diverted to other companies and projects.
How much money is involved in the fraud?
The alleged fraud involving Jaypee Infratech is estimated to be worth Rs 12,000 crore, affecting thousands of homebuyers and investors.
What actions did the ED take in May?
In May, the ED conducted a major operation targeting Jaypee Infratech and Jaypee Associates, among other real estate groups. The raids spanned 15 locations across the National Capital Region and Mumbai, including offices and properties linked to the entities.
What is the impact of this arrest on the real estate sector?
The arrest of Manoj Gaur is expected to set a precedent for stricter regulation and oversight in the real estate sector, ensuring that large-scale frauds are prevented in the future and bringing accountability to the industry.
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