In Frame: Manoj Gaur (Image: X)
New Delhi: In a much anticipated development, the Enforcement Directorate (ED) on Wednesday arrested Manoj Gaur, former Executive Chairman and CEO of Jaiprakash Associates Ltd (JAL) and former Chairman of Jaypee Infratech Ltd (JIL), in a money-laundering case linked to alleged diversion of homebuyers’ funds from Jaypee Group’s large housing projects in Noida’s Sector 128 and Sector 151.
Gaur’s arrest under the Prevention of Money Laundering Act (PMLA), 2002, follows months of scrutiny of financial records, inputs by stakeholders, statements and evidence related to complaints filed by thousands of homebuyers whose projects were left stalled for years. The ED claims that of the approximately Rs 14,599 crore collected from buyers, a significant portion was siphoned off through layered transactions within various JP Group companies rather than used for construction.
Officials said the investigation has uncovered a pattern of funds being moved across Jaypee entities, including JAL, JIL, Jaypee Healthcare Ltd, Jaypee International Sports Ltd, and related trusts. The agency alleges the diversions led to massive project delays and financial losses to homebuyers.
The probe is expected to widen, officials have indicated.
In June 2024, Suraksha Realty took over the debt-ridden JIL after the NCLT and later the NCLAT approved its resolution plan. Suraksha has since taken charge of completing and selling the stalled projects. Officials said the money-laundering investigation will cover the role of all former and current executives, including those associated with Suraksha, since the sale and allotment of units is now being handled by the new management. Investigators are also examining information suggesting that in recent times some units in these societies may have been allotted to senior officials as quid pro quo.
Gaur’s arrest follows searches conducted in May 2025 at 15 locations in Delhi, Noida, Ghaziabad and Mumbai, where the ED seized extensive financial and digital documents. Officials said the material obtained during those searches, coupled with statements and complaints, established his role in the diversion of funds. He was arrested on Wednesday after completion of the required legal procedures under Section 19 of the PMLA.
Further investigation is underway.
