JaiCorp Discloses ED Froze ₹99 Crore Assets, Seized ₹1.74 Crore Cash in Fraud Probe

Jai Corp Limited has provided detailed clarification regarding Enforcement Directorate (ED) actions following searches conducted on December 19, 2025. The company disclosed significant financial implications including asset freezing and cash seizures in its latest regulatory filing dated December 23, 2025.

ED Order and Asset Freezing

The Mumbai Zonal Office-II of the Directorate of Enforcement issued an order on December 19, 2025, under Section 17(1-A) of the Prevention of Money Laundering Act, 2002. The order directed freezing of substantial assets belonging to the company's subsidiary.

Asset Details:	Value/Amount
Frozen Assets Value:	₹99.00 crores
Asset Type:	Demat accounts and mutual fund folios
Entity Affected:	Urban Infrastructure Venture Capital Ltd. (UIVCL)
Valuation Date:	December 19, 2025

Cash Seizures from Directors' Residences

ED officials seized cash during searches at promoter residences, with the company providing specific details about the amounts recovered.

Seizure Details:	Information
Total Cash Seized:	₹1.74 crores
Source Locations:	Directors' residences
Affected Directors:	Mr. Virendra Jain, Mr. Gaurav Jain
Date of Seizure:	December 19, 2025

Search Operations Coverage

The ED searches covered multiple locations including corporate premises and key management personnel residences.

Search Locations:	Details
Corporate Office:	Mumbai office (9:28 hours to 23:50 hours)
Chairman Residence:	Mr. Anand Jain
Vice-Chairman Residence:	Mr. Virendra Jain
Managing Director Residence:	Mr. Gaurav Jain

Company's Disclosure Position

JaiCorp Limited explained its delayed disclosure approach, stating there was no specific requirement under Regulation 30 of SEBI (LODR) Regulations, 2015 to immediately disclose ED orders. The company was evaluating the legal position and ascertaining facts before making disclosures to avoid hasty or incorrect information sharing.

Financial Impact Assessment

The company stated that since the matter is currently sub-judice and investigation outcome is pending, it is not possible to ascertain the financial impact at this stage. The clarification was provided in response to BSE and NSE queries regarding media reports about the ED actions.

Regulatory Filing:	Details
Filing Date:	December 23, 2025
Signatory:	Deepak Ojha, Chief Financial Officer
BSE Scrip Code:	512237
Regulation:	BSE Regulation 30

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.14%	+2.12%	-6.54%	+22.07%	-59.19%	+45.75%

Jai Corp Limited, a prominent Indian company, has recently addressed regulatory compliance issues by paying a fine to the Bombay Stock Exchange (BSE). The company's actions highlight the ongoing focus on corporate governance standards in India's financial markets.

Fine Details and Compliance Issues

Jai Corp Limited settled a penalty of Rs. 2,06,500 with BSE Limited on November 28, 2025. This fine was imposed due to non-compliance with board composition requirements and issues related to the constitution of its nomination and remuneration committee. The specifics of the violations and the fine are as follows:

Aspect	Details
Fine Amount	Rs. 2,06,500 (including GST)
Recipient	BSE Limited
Violation Period	Quarter ended September 30, 2025
Primary Violations	1. Failure to appoint a woman director 2. Issues with nomination and remuneration committee constitution
Underlying Cause	Delay in appointment of an Independent Director

Regulatory Framework and Implications

The fine imposed on Jai Corp Limited stems from regulations set by the Securities and Exchange Board of India (SEBI), which mandate specific requirements for board composition and committee structures in listed companies. These regulations are designed to ensure diverse representation and proper corporate governance.

Board Composition

SEBI regulations require listed entities to have a diverse board, including the presence of a woman director. Jai Corp's failure to comply with this requirement resulted in part of the penalty.

Committee Constitution

The nomination and remuneration committee plays a crucial role in corporate governance, overseeing matters related to director appointments and remuneration policies. The company's non-compliance in this area contributed to the fine.

Company's Response

Jai Corp Limited demonstrated prompt action in addressing the compliance issues:

The company paid the full fine amount of Rs. 2,06,500 on November 28, 2025.
This swift payment indicates the company's commitment to resolving regulatory matters and maintaining good standing with the stock exchange.

Broader Implications for Corporate Governance

This incident underscores the importance of adhering to regulatory requirements in India's corporate landscape:

Regulatory Vigilance: The imposition and prompt payment of the fine highlight the active role of regulatory bodies in monitoring and enforcing compliance.
Corporate Responsibility: It serves as a reminder for all listed companies to maintain vigilance in meeting board composition and committee structure requirements.
Investor Confidence: Timely resolution of such issues is crucial for maintaining investor trust and market integrity.

As the Indian market continues to evolve, incidents like these emphasize the need for companies to prioritize corporate governance and stay abreast of regulatory requirements. Jai Corp Limited's swift action in settling the fine demonstrates a commitment to addressing compliance issues, which is essential for maintaining stakeholder confidence in today's dynamic business environment.