Enforcement Directorate Seizes ₹400 Crore Assets in Jaypee Fraud Case

The Enforcement Directorate (ED) has taken a significant step in the ongoing investigation into the Jaypee Group's large-scale fraud and misappropriation of funds. On January 7, the ED announced the attachment of assets worth ₹400 crore. These assets belong to Jaiprakash Sewa Sansthan (JSS) and Page 3 Buildtech Private Limited. The move is linked to the probe against Jaypee Infratech Ltd (JIL) and Jaiprakash Associates Ltd (JAL) and their associated entities.

The action has been taken under the provisions of the Prevention of Money Laundering Act (PMLA). The ED’s statement indicated that a provisional order has been issued to attach immovable assets of JSS and Page 3 Buildtech, with a combined current market value of ₹400 crore. It is not specified how much of this amount belongs to each party.

Manoj Gaur, the former Managing Director of Jaypee Infratech and the managing trustee of JSS, was arrested by the ED in November and is currently in judicial custody. Page 3 Buildtech is controlled and beneficially owned by Honeyy Katiyal, the founder of Noida-based Investors Clinic. The ED claims that these two companies received a part of the diverted homebuyers' funds.

Efforts to reach Gaur’s legal representative for a comment were unsuccessful, and a response from Investors Clinic is still awaited. The fraud case stems from FIRs registered by the Delhi and Uttar Pradesh Police based on complaints filed by homebuyers of the Jaypee Wishtown and Jaypee Greens projects in Noida.

According to the complaints, JIL and JAL, along with their promoters, including Manoj Gaur, collected funds from thousands of investors for the construction of homes but diverted these funds, leaving the homebuyers defrauded and their projects incomplete. The ED stated that the two Jaypee group companies collected ₹14,599 crore from more than 25,000 homebuyers, as per claims admitted by the National Company Law Tribunal (NCLT). However, substantial amounts were diverted and siphoned off to related group entities, including JSS, Jaypee Healthcare Ltd., and Jaypee Sports International Ltd.

The investigation has revealed the central role of Manoj Gaur in planning and executing the fund diversion through a complex web of transactions within the Jaypee group and its associated entities. The ED’s action is a significant step in ensuring that the perpetrators of this fraud are held accountable.

Business conglomerate Adani Enterprises has won a bid to acquire Jaiprakash Associates Ltd through an insolvency process. The lenders of JAL have already approved Adani Group's resolution plan to acquire the bankrupt firm, and the National Company Law Tribunal (NCLT) nod is pending. JAL is involved in various businesses, including construction, power, hotels, real estate, and sports management.

Meanwhile, Mumbai-based Suraksha Group has acquired Jaypee Infratech Ltd through an insolvency process. Suraksha Group is primarily into real estate and also owns the Yamuna Expressway, which connects Noida and Greater Noida to Agra. This acquisition is expected to bring some stability to the affected homebuyers and stakeholders.

The ED’s attachment of these assets is a crucial step in the ongoing efforts to recover the diverted funds and bring justice to the thousands of homebuyers who have been defrauded. The investigation continues, and further actions are anticipated as the case progresses.