ED attaches ₹400 crore assets in Jaypee homebuyers money laundering case
The Enforcement Directorate has provisionally attached ₹400.00 crore worth of immovable assets under PMLA in its money laundering investigation into Jaypee Group's alleged fund diversion. The action targets properties of Jaiprakash Sewa Sanstha and Page 3 Buildtech Private Limited, connected to the probe into Jaypee Infratech Ltd and Jaiprakash Associates Ltd regarding homebuyers' fund fraud. Investigation reveals ₹14,599.00 crore was collected from over 25,000 homebuyers, with substantial amounts allegedly diverted to related entities for non-construction purposes.
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The Enforcement Directorate has provisionally attached immovable assets worth ₹400.00 crore as part of its ongoing money laundering investigation into alleged fund diversion linked to the Jaypee Group's stalled housing projects. The action was announced in an official statement issued on January 7, 2025.
Asset Attachment Details
The attachment has been executed by the ED's Delhi Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002. The action specifically targets properties belonging to two entities:
| Entity | Type |
|---|---|
| Jaiprakash Sewa Sanstha | Trust entity |
| Page 3 Buildtech Private Limited | Private company |
The action connects to the agency's broader probe into Jaypee Infratech Ltd (JIL), Jaiprakash Associates Ltd (JAL), and their associated entities regarding alleged large-scale fraud involving homebuyers' funds.
Investigation Background
The investigation was initiated based on multiple FIRs registered by the Economic Offences Wings of the Delhi and Uttar Pradesh Police. The complaints originated from homebuyers of Jaypee Wishtown and Jaypee Greens projects, who alleged criminal conspiracy, cheating and criminal breach of trust against JIL, JAL and their promoters and directors, including group chairman Manoj Gaur.
According to the ED, funds collected from thousands of homebuyers for construction and completion of residential projects were allegedly diverted for purposes other than construction, resulting in prolonged delays and incomplete projects.
Fund Diversion Scale
The investigation has revealed significant financial irregularities involving homebuyer funds:
| Parameter | Amount/Details |
|---|---|
| Total funds collected | ₹14,599.00 crore |
| Number of affected homebuyers | Over 25,000 |
| Source of claims | National Company Law Tribunal (NCLT) |
The ED's investigation found that substantial portions of these funds were diverted for non-construction purposes and siphoned off to related group entities, including Jaypee Sewa Sansthan, Jaypee Healthcare Ltd and Jaypee Sports International Ltd. Manoj Gaur serves as the Managing Trustee of Jaypee Sewa Sansthan, which allegedly received part of the diverted funds.
Asset Diversion Findings
Beyond fund diversion, the ED's probe has uncovered alleged diversion of assets belonging to JIL and JAL to other entities. Page 3 Buildtech Private Limited, according to the agency, is controlled and beneficially owned by Honey Katiyal. The immovable assets attached in the current action represent proceeds of crime generated through the alleged money laundering linked to the Jaypee housing projects.
Enforcement Actions
The ED conducted comprehensive search operations on May 23, 2024, covering 15 locations across Delhi, Noida, Ghaziabad and Mumbai, including offices and premises of Jaiprakash Associates Ltd and Jaypee Infratech Ltd. During these searches, the agency seized substantial financial documents and digital records, which provided evidence of fund diversion and money laundering.
Based on investigation findings, Manoj Gaur was arrested on November 13, 2024, under Section 19 of the PMLA after following due legal procedures. He remains in judicial custody.
Ongoing Investigation
The ED has established Manoj Gaur's central role in planning and executing the alleged diversion of homebuyers' funds through a complex web of transactions within the Jaypee Group and its associated entities. The agency indicated that further investigation is underway, suggesting additional attachments and legal action could follow.
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