On Thursday, Delhi court remanded Manoj Gaur, the former Managing Director of Jaypee Infratech Ltd, to five days of custody with the Enforcement Directorate following his arrest in a money laundering case.
Gaur was taken into custody by the agency earlier that day in connection with a Rs 14,599 crore fraud involving homebuyers, and was subsequently presented before Additional Sessions Judge Dhirendra Rana.
The Enforcement Directorate requested a seven-day custody period for Gaur, who was apprehended under the Prevention of Money Laundering Act (PMLA). The agency claimed that funds raised from thousands of homebuyers for the construction and completion of residential projects were misappropriated for purposes unrelated to construction, thereby defrauding the buyers and leaving their projects unfinished.
During the hearing, ED counsel Atul Tripathi stated that two companies, Jaiprakash Associates Ltd (JAL) and Jaypee Infratech Ltd (JIL), had amassed over Rs 33,000 crore for the construction and completion of residential projects in Jaypee Wishtown and Jaypee Greens located in Noida and Greater Noida, respectively.
However, approximately Rs 13,000 crore was redirected for other uses. “We have identified numerous transactions that indicate your (Gaur’s) involvement. It is our obligation to investigate this matter thoroughly. We must review all relevant documents. He is a pivotal figure in all the companies involved. To finalize our investigation, we are requesting seven days of custody,” Tripathi remarked.
Gaur’s attorney, Farukh Khan, contested the agency’s request, asserting that his client had provided all necessary documents, cooperated fully with the agency, and responded to all inquiries. Khan noted that Gaur, aged 61, suffers from diabetes and asthma, and that his statement regarding the allegations was recorded by the ED in 2021.
The ED initiated its investigation into the Jaypee Group following multiple FIRs filed by the Economic Offences Wings (EOW) of the Delhi and Uttar Pradesh police, based on complaints lodged by homebuyers of the Jaypee Wishtown and Jaypee Greens projects, who alleged criminal conspiracy, cheating, and criminal breach of trust against the company and its promoters.
On May 23, the agency conducted searches at 15 locations in Delhi, Noida, Ghaziabad and Mumbai, including the offices and premises ofĀ Jaiprakash Associates Ltd.Ā and Jaypee Infratech Ltd.
“The ED investigation revealed that out of approximately Rs 14,599 crore collected by JAL and JIL from homebuyers (as per claims admitted by NCLT), substantial amounts were diverted for non-construction purposes and siphoned off to related group entities and trusts, including Jaypee Sewa Sansthan (JSS), M/s Jaypee Healthcare Ltd. (JHL), and M/s Jaypee Sports International Ltd. (JSIL),” the agency said.
