ED Arrests Jaypee Infratech MD Manoj Gaur for Cheating Homebuyers

The Enforcement Directorate (ED) on Thursday reportedly arrested Jaypee Infratech’s Managing Director, Manoj Gaur, in connection with a cheating case involving homebuyers. The arrest came months after the anti-money laundering agency conducted searches at locations linked to Jaypee Infratech Ltd, Jaiprakash Associates Ltd, and their associated entities.

Reports suggest that Gaur’s arrest is linked to allegations of a ₹12,000-crore money-laundering and fraud case.

In May, the ED conducted search operations at 15 premises across Delhi-NCR and Mumbai under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The searches covered the offices and premises of bankrupt Noida-based builder Jaiprakash Associates Ltd (JAL), its related entities, and its promoters and directors. The agency also searched locations linked to key business associates, including Gaursons India Pvt Ltd, Gulshan Homz Pvt Ltd, and Mahagun Real Estate Pvt Ltd.

The ED launched its investigation based on FIRs filed by the Economic Offences Wing (EOW) of the Delhi and Uttar Pradesh Police against JAL, Jaypee Infratech Ltd (JIL), and their promoters and directors.

The FIRs allege large-scale fraud and criminal conspiracy, accusing them of misleading homebuyers and investors into investing in projects such as Jaypee Wishtown and Jaypee Greens under false promises of property allotment.

During the search operations, officials seized financial records, digital devices, documents related to properties owned by promoters and their family members, and cash amounting to ₹1.70 crore.

What is the Jaypee Infratech home buyers cheating case?

The investigation centres on alleged fraud in Jaypee Wish Town, where flats were sold in 2010–11 but not delivered. Multiple FIRs were filed in 2017 after homebuyers protested against project delays and alleged diversion of funds.

Jaiprakash Associates, the flagship firm of the crisis-hit Jaypee Group, is involved in cement, construction, power, real estate, and hospitality businesses, among others. It entered the Corporate Insolvency Resolution Process (CIRP) in 2024, with creditors claiming around ₹57,185 crore from the firm.

Meanwhile, Jaypee Infratech Ltd (JIL) was admitted to insolvency proceedings in August 2017 after the National Company Law Tribunal (NCLT) accepted an application by IDBI Bank Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC), following severe financial distress and failure to deliver homes to thousands of buyers.

Mumbai-based Suraksha Group later acquired Jaypee Infratech through the insolvency process.