Manoj Gaur, MD of JP Infratech, Arrested in ₹12,000 Crore Homebuyer Fraud Case

Jaypee Infratech Limited Managing Director (MD) Manoj Gaur has been arrested by the Enforcement Directorate (ED) in connection with a money laundering case. The case involves the alleged diversion of ₹12,000 crore collected from homebuyers, affecting nearly 21,000 individuals who invested in projects like Wish Town Noida but never received possession of their flats.

According to ED officials, Manoj Gaur played a key role in the company’s financial decisions and facilitated the diversion of funds to other group entities. The arrest followed extensive raids at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai, where investigators seized ₹1.7 crore in cash, digital records, and property-related documents.

The ED stated that JP Infratech Limited (JIL) and its parent company Jaypee Associates Limited (JAL) were involved in large-scale financial irregularities. Funds collected from homebuyers and banks for housing projects were allegedly diverted to other ventures, leaving thousands of buyers without their promised homes.

JP Infratech Limited (JIL) was once a leading real estate developer in the National Capital Region (NCR), known for ambitious projects such as Wish Town and Jaypee Greens along the Yamuna Expressway. However, in 2017, IDBI Bank filed a petition in the National Company Law Tribunal (NCLT), Allahabad, over a loan default of ₹526 crore, marking the beginning of JIL’s insolvency process on August 9, 2017.

More than 21,000 homebuyers were left stranded after booking flats and paying advances, as construction came to a halt. The Supreme Court later intervened, leading to amendments in the Insolvency and Bankruptcy Code (IBC) that granted homebuyers the status of financial creditors, giving them voting rights in the resolution process.

For thousands of buyers, the wait has stretched 8–10 years despite having paid significant advances. Many who booked flats in Wish Town, Noida, held repeated protests as construction stopped following fund diversion. An ED official described it as “a case of criminal conspiracy and dishonest inducement, where funds were collected from buyers on false promises.”

The recent arrest of Manoj Gaur has rekindled hopes among affected homebuyers. Experts believe the move could accelerate the NCLT resolution process and potentially lead to fund recovery from seized assets. However, they caution that a complete resolution may still take two to three years.