Regulatory filings in the United States show that a securities trading subsidiary owned by India’s Jaypee group transferred $750,000 (approximately Rs 6.43 crore) to a related overseas entity, showing that the conglomerate maintains overseas financial operations even as its promoter Manoj Gaur faces a money laundering investigation in India that is being probed by the Enforcement Directorate which has stated that Gaur played a central role in the diversion of funds “through a complex web of transactions within the Jaypee Group and its associated entities.”
Jaypee International Inc, a Chicago-based broker-dealer regulated by the US Securities and Exchange Commission, disclosed in its audited financial statements for the year ending 31 March 2025, that it extended a loan of Rs 6.43 crore to Jaypee Singapore Pte Ltd, identified as its sister company.
The filing also disclosed shareholder withdrawals totaling $935,000 (approximately Rs 8.02 crore) during the same financial year, indicating that funds were transferred by Jaypee International Inc to its sole shareholder and parent company, Jaypee Capital Services Ltd, an India-based securities and commodities brokerage firm.
Jaypee Capital Services Ltd forms part of the broader Jaypee group corporate structure and directly owns the US-based trading subsidiary, according to the SEC filing.
The filing confirms a financial transfer between Jaypee-controlled entities in the United States and Singapore.
Earlier this week, a Delhi court denied bail to Gaur, observing that thousands of homebuyers were still awaiting delivery of their homes while the accused was allegedly enjoying the proceeds of crime. Gaur was arrested by the Enforcement Directorate on 13 November 2025, in connection with a money-laundering investigation linked to alleged diversion of homebuyer funds.
The case originated from complaints filed by homebuyers of Jaypee Wishtown and Jaypee Greens projects with the Economic Offences Wing in Delhi and Uttar Pradesh. “Thousands of home buyers, who had invested their hard-earned money in pursuit of a dream home, are running from pillar to post. On the other hand, the accused was enjoying the proceeds of crime by layering alleged business transactions,” Additional Sessions Judge Dhirendra Rana of Patiala House Court said in his 16 February order while directing Gaur, who had been on interim bail, to surrender.
According to the ED, Jaiprakash Associates Ltd and Jaypee Infratech Ltd collected over Rs 33,000 crore from homebuyers for residential projects in Noida and Greater Noida, but allegedly diverted over Rs 13,000 crore to other entities and purposes.
According to the agency, Rs 125.5 crore was allegedly diverted from Jaypee Infratech Ltd to Jaiprakash Sewa Sansthan, while Rs 430 crore each was allegedly diverted toward investments in Jaypee Healthcare Ltd and Jaypee Sports International Ltd through Jaiprakash Associates Ltd. The agency also alleged diversion of Rs 4,166 crore toward the Yamuna Expressway project.
The SEC filing shows that Jaypee International Inc generated $753,204 (approximately Rs 6.46 crore) in total revenue and reported net income of $197,315 (approximately Rs 1.69 crore) during the financial year, indicating that the subsidiary remains operational and engaged in proprietary trading and brokerage activities.
The filing states that the company engages in securities and commodities trading, including proprietary algorithmic trading, and earns income from commissions, trading activity, and platform operations.
The ownership chain of the US subsidiary traces directly to Jaypee Capital Services Ltd in India, linking the overseas financial entity to the Jaypee group’s domestic corporate structure.
The ongoing ED investigation relates to alleged diversion of homebuyer funds from real estate projects and does not directly reference the US subsidiary or its disclosed transactions.
Separately, India’s market regulator Securities and Exchange Board of India had issued an adjudication order in 2017 examining trading activity by Jaypee Capital Services Ltd in currency derivatives markets, finding that large-scale self-trades contributed significantly to exchange turnover during the inspection period.
The March 2025 SEC filing does not indicate any wrongdoing in connection with Jaypee International Inc or its financial transactions. However, it confirms cross-border financial transactions between Jaypee-controlled subsidiaries, reflecting the group’s international corporate structure even as multiple complaints filed by homebuyers remain under investigation.
Queries sent to the companies remained unanswered at the time of publication
