New Delhi/Chandigarh: The Enforcement Directorate (ED) has provisionally attached immovable assets worth nearly ₹400 crore in an ongoing money laundering probe against the Jaypee Group, intensifying action in one of India’s biggest real estate fraud cases involving thousands of homebuyers.
The attachment, carried out by the ED’s Delhi Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, pertains to properties owned by M/s Jaiprakash Sewa Sanstha (JSS) and M/s Page 3 Buildtech Private Limited. The case relates to large-scale diversion and misappropriation of funds collected from homebuyers of Jaypee Wishtown and Jaypee Greens residential projects.
₹14,599 Crore Collected, Projects Left Incomplete
According to the ED, investigations revealed that Jayprakash Associates Ltd (JAL) and Jaypee Infratech Ltd (JIL) collected approximately ₹14,599 crore from over 25,000 homebuyers, as admitted claims before the National Company Law Tribunal (NCLT). A substantial portion of this money was allegedly diverted for non-construction purposes, leaving housing projects stalled and buyers defrauded.
The probe was initiated following multiple FIRs registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police, based on complaints from aggrieved homebuyers. The FIRs allege criminal conspiracy, cheating, and criminal breach of trust by JIL, JAL, and their promoters and directors, including Manoj Gaur.
Funds Siphoned to Group Entities, Trusts
ED investigations found that diverted funds were routed through a complex web of transactions to various group entities, including Jaypee Sewa Sanstha (JSS), Jaypee Healthcare Ltd (JHL), and Jaypee Sports International Ltd (JSIL).
The agency further established that Manoj Gaur, a key promoter of the Jaypee Group, is the Managing Trustee of Jaypee Sewa Sanstha, which received a portion of the siphoned funds.
Additionally, the ED uncovered diversion of assets belonging to JIL and JAL to M/s Page 3 Buildtech Private Limited, a firm allegedly controlled and beneficially owned by Honey Katiyal.
Searches, Seizures and Arrest
Earlier, on May 23, 2025, the ED conducted search operations at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai, including the offices and premises of JAL and JIL. During the searches, investigators seized a large volume of financial documents, digital records, and material evidence pointing to money laundering and fund diversion.
The agency has concluded that Manoj Gaur played a central role in planning and executing the diversion of homebuyers’ funds through interconnected entities within the Jaypee Group.
He was arrested on November 13, 2025, under Section 19 of the PMLA, after following due legal procedures. Gaur is currently lodged in judicial custody.
Probe Continues
The ED said further investigation is underway to trace additional proceeds of crime, identify other beneficiaries, and attach more assets linked to the alleged laundering of homebuyers’ money.
