ED to Delhi HC: 42% of Jaypee homebuyers’ funds diverted to F1 track, hospital, and other ventures

In a major revelation in the long-running Jaypee Infratech case, the Enforcement Directorate (ED) informed the Delhi High Court that 42 paise of every single rupee collected from homebuyers was diverted to unrelated projects, entities, and trusts instead of being used for residential construction, according to a report by The Indian Express.

According to the central agency, companies Jaiprakash Associates Ltd (JAL) and Jaypee Infratech Ltd (JIL) collected ₹32,825 crore from approximately 25,000 homebuyers across Noida and Greater Noida. Out of this massive pool of capital, roughly ₹13,833 crore was siphoned away through six primary channels into entities directly controlled by former Jaypee Infratech CMD Manoj Gaur. The diverted funds were allegedly used to finance the Jaypee Group’s Formula One circuit via Jaypee Sports International Ltd, the Yamuna Expressway project, Jaypee Healthcare Ltd, and a charitable trust named Jaiprakash Sewa Sansthan.

The agency presented these findings during a bail hearing for Manoj Gaur, who was arrested in November in connection with the 2018 money laundering investigation. Representing the ED, standing counsel Rahul Tyagi also pointed out that despite the company suffering continuous financial losses between 2009–10 and 2021–22, Gaur drew ₹48.91 crore in salary, at times making up to 93 times the median pay of regular employees.

After hearing the agency’s arguments, Justice Purushaindra Kumar Kaurav observed that no prima facie case for bail had been made out, noting that the alleged diversion of over ₹13,000 crore was simply too substantial and that Gaur’s custody of nine months could not justify his release. The court adjourned the matter to August 18 for Gaur’s defense to present its reply.

The case originated from multiple criminal complaints filed by distressed buyers with the Economic Offences Wings of Delhi and Uttar Pradesh Police. Most of the unfinished apartments are concentrated in the massive Jaypee Greens Wish Town township across Noida’s Sectors 128 to 134, where thousands of buyers have been waiting for possession since booking units in 2011. In parallel, the Supreme Court has also issued a notice to the ED on a writ petition filed by a homebuyer seeking a court-monitored investigation, flagging that only ₹400 crore has been provisionally attached after more than seven years of investigation.

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