In New Delhi on Thursday, the Special Patiala House Court handed Manoj Gaur, the former chief of Jaypee Infratech (JIL), over to the Enforcement Directorate (ED) for a five‑day hold and intensive questioning. The ED wants Gaur to explain how large sums from homebuyers were siphoned off and never used for building their flats.
Gaur was arrested earlier that day under the Prevention of Money Laundering Act (PMLA) after the ED discovered that roughly ₹14,599 crore collected by Jaypee projects had been diverted for non‑construction purposes. The case touches thousands of homebuyers who bought houses in Jaypee Wishtown and Jaypee Greens projects but never received their completed units.
### How the money trail worked
Investigation documents show the money moved from the main Jaypee companies—Jaypee Infratech Ltd. (JIL) and Jaiprakash Associates Ltd. (JAL)—into related trusts and subsidiaries like Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL). Gaur is a managing trustee of JSS, which reportedly received part of the diverted funds.
The ED began its probe after multiple FIRs filed by Delhi and Uttar Pradesh police and complaints from homebuyers alleging cheating, criminal conspiracy, and breach of trust. Court filings confirm the ED is scrutinising the alleged misuse of homebuyer money for unrelated ventures.
### Seizures and searches
On May 23, the ED conducted searches at 15 locations tied to Gaur’s companies across Delhi, Noida, Ghaziabad, and Mumbai. Officers seized records—both paper and digital—as well as cash worth ₹1.7 crore. They also found property documents registered in the names of promoters, their families, and other group firms.
### Why this matters
The insolvency case that began in 2017 after JIL defaulted on a ₹526 crore payment drew national attention. Over 21,000 homebuyers had booked flats, and the diversion of funds meant their projects were left incomplete. The ED’s latest actions aim to trace and recover the money and hold those responsible accountable.
The Special Court’s decision signals a deepening push by Indian authorities to crack down on large‑scale real‑estate fraud and money‑laundering schemes, underscoring the government’s commitment to protecting consumers and ensuring transparency in construction projects.
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