ED arrests former Jaypee Group chief Manoj Gaur in money-laundering case

The Enforcement Directorate (ED) on Thursday arrested Manoj Gaur, former executive chairman and CEO of Jaiprakash Associates Ltd (JAL) and former CMD of Jaypee Infratech Ltd (JIL), in a money-laundering case linked to alleged diversion of homebuyers’ funds by the Jaypee Group.

Gaur was taken into custody under Section 19 of the Prevention of Money Laundering Act (PMLA) following a detailed probe and scrutiny of financial evidence, the agency said.

The money-laundering investigation stems from multiple FIRs filed by the Economic Offences Wings of Delhi and Uttar Pradesh Police based on complaints from homebuyers of the Jaypee Wishtown and Jaypee Greens projects. The FIRs alleged criminal conspiracy, cheating and criminal breach of trust by the company and its promoters after thousands of buyers were left without completed homes despite having paid substantial sums.

According to the ED, JAL and JIL collected about ₹14,599 crore from homebuyers — as per claims admitted by the National Company Law Tribunal — but “substantial amounts” were allegedly diverted for purposes unrelated to construction. The money, the agency said, was siphoned off to various group entities and trusts, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd (JHL) and Jaypee Sports International Ltd (JSIL).

Investigators have also found that Gaur is the managing trustee of Jaypee Sewa Sansthan, one of the recipients of the diverted funds.

The ED had earlier conducted searches on May 23, 2025, at 15 locations across Delhi, Noida, Ghaziabad and Mumbai, covering the offices and premises of JAL and JIL. During the raids, officials seized a large quantity of financial and digital documents said to support allegations of fund diversion and money laundering.

The agency claimed that its probe has established Gaur’s “central role” in planning and executing the diversion of homebuyers’ money through a complex network of transactions within the Jaypee Group and related entities.

Gaur was arrested after completion of procedural formalities, the ED said, adding that further investigation is underway.

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