Former Jaypee Chairman Arrested in Massive Homebuyer Fraud Case
The Enforcement Directorate has taken into custody Manoj Gaur, the former Managing Director and Chairman of Jaypee Infratech Limited, in connection with a staggering money laundering case involving approximately Rs 14,599 crore of homebuyers' funds. The arrest, which occurred earlier this week, marks a significant development in a case that has left thousands of homebuyers in Noida and Greater Noida waiting for their dream homes.
The Alleged Financial Diversion
According to the investigating agency, two companies within the Jaypee Group - M/s Jaiprakash Associates Ltd (JAL) and M/s Jaypee Infratech Ltd (JIL) - collected over Rs 33,000 crore from homebuyers for constructing residential projects in Noida and Greater Noida. However, the ED investigation has revealed that nearly Rs 13,000 crore was allegedly diverted for purposes completely unrelated to construction.
The agency stated that substantial amounts from the Rs 14,599 crore collected from homebuyers were systematically diverted to various group entities and trusts. These included:
- Jaypee Sewa Sansthan (JSS)
- M/s Jaypee Healthcare Ltd. (JHL)
- M/s Jaypee Sports International Ltd. (JSIL)
Court Proceedings and Evidence
On Thursday, Additional Sessions Judge Dhirendra Rana of Patiala House Court sent Gaur to ED custody for five days after hearing the agency's arguments. The court noted the serious nature of allegations against Gaur, emphasizing that he had been instrumental in administering JAL, JIL and other subsidiary companies as CEO and Managing Director.
The judge specifically mentioned that hard-earned money of innocent buyers had been invested in several companies and that nine FIRs have been registered against the accused. Given the massive amount involved, the court deemed detailed and sustained custodial interrogation necessary.
The ED's case gained momentum after coordinated search operations conducted on May 23, 2025 at 15 locations across Delhi, Noida, Ghaziabad, and Mumbai, including Jaypee Infratech offices. During these raids, the agency seized large volumes of financial and digital records that allegedly provided crucial evidence supporting money laundering and fund diversion charges against Gaur.
Homebuyers' Protests and Case Origins
The case originated from complaints filed by approximately 20,000 homebuyers of Jaypee Wishtown and Jaypee Greens projects with the Economic Offences Wings in Delhi and Uttar Pradesh. The homebuyers' primary grievance was that despite making substantial payments from their life savings, the projects remained incomplete and their flats were never delivered.
In April 2025, nearly a hundred homebuyers of Jaypee's Wish Town project staged protests outside Jaypee School in Noida's Sector 128, highlighting the prolonged delays in receiving their homes. The ED built its case based on nine FIRs registered from 2017 onwards being investigated by Delhi Police, EOW, and UP Police.
While closure reports have been filed in three FIRs by UP Police, the remaining cases continue to be investigated. The ED is currently working to ascertain the total proceeds of crime and is questioning Gaur to uncover the full extent of the alleged scam. The accused will be produced before the court again on Tuesday, when the ED is expected to submit its findings from the ongoing interrogation.
